— CoinShares (@CoinSharesCo) July 1, 2024
Digital asset investment products saw their third consecutive week of outflows totalling US$30m, with #Ethereum seeing its the largest outflow since August 2022, totalling US$61m.
Get more insights in our full report: https://t.co/gc7CX46Ys0 pic.twitter.com/HP2ZmB9W2m
Ethereum in crisis: The biggest capital outflow since August 2022!
full version at cointribune
According to the latest report by CoinShares, the star blockchain Ethereum experienced capital outflows amounting to 61 million dollars in a single week. This marks its worst performance since August 2022. This situation raises many questions about the future of the ETH crypto and its impact on the crypto market.
Ethereum records a massive loss of 61 million dollars
In just one week, investment products based on Ethereum recorded a massive loss of 61 million dollars. This worrying trend marks the third consecutive week of capital outflows for digital assets.
According to the report by CoinShares, this is a massive capital outflow not seen since August 2022. Total losses over two weeks amount to 119 million dollars. Enough to raise questions about Ethereum’s future performance!
Admittedly, trading volume has increased by 43%. Nevertheless, it still remains well below the annual average of 14.2 billion dollars. This indicates a decline in activity and investor confidence in the Ethereum crypto-asset.
What impacts on the crypto market?
While Ethereum is undergoing massive capital outflows, other cryptocurrencies are showing positive signs. This is particularly the case for Bitcoin, which recorded inflows of 10 million dollars. Solana and Litecoin recorded inflows of 1.6 million dollars and 1.4 million dollars respectively.
As of today, investment products based on Ethereum are thus the least performing. However, this could have significant repercussions on the entire crypto ecosystem, particularly on the Ethereum blockchain.
For example, dApp and ERC-20 token developers might be encouraged to turn to competing platforms. This would jeopardize Ethereum’s dominant position in the smart contract domain.
The recent capital outflow from Ethereum highlights the challenges the digital asset market is facing.
