For long, Bitcoin has remained the major target for institutional investors, but lately Ethereum is turning up strongly on their radars too. Many companies have begun to accumulate the leading altcoin at a significant rate, with some even dumping a portion of their Bitcoin holdings to buy more ETH.
Jane Street Shows Interest In EthereumIn the expert’s view, BTC was the first digital store of value, but now ETH is becoming the financial infrastructure trade. Such a distinction, he believes, is where the market keeps underpricing the altcoin.
ETH Network Sees A Large Realized Profit MarginThis may appear counterintuitive to see a spike of $74.58 million in realized profits because ETH’s price has fallen by 5.5% over the past 3 days. However, this trend is linked to investors’ behavior during the price action. ETH holders with a much lower cost basis are selling into the dip.
While ETH traded below $2,000 throughout much of February and March, savvy traders accumulated despite war fears and heightened uncertainty in crypto at the time. Furthermore, wallets that were collected during those months are still profitable despite this mid-May downturn. Meanwhile, many have chosen to sell while they believe they still have a chance to make money.
Santiment also highlighted an increase in the volume of on-chain movement on the Ethereum blockchain. The 4-hour candles exhibit significant price compression at $2,241, indicating increased distribution activity on the chain. Historically, more transactions have led to more realized P&L events. When volume is increased, even little individual profits add up to significant network-level totals.
