Great Minds Park Their Money In These 2 Cryptocurrencies!

According to crypto analytics firm IntoTheBlock, institutional investors continue to pour money into the market’s 2 largest cryptocurrencies.

Institutional investors are accumulating these 2 cryptocurrencies

The company’s research leader, Lucas Outumuro, stated in a recent analysis that Bitcoin and Ethereum are heavily segregated on exchanges. But this week is progressing at a slower rate compared to previous weeks. According to Outumuro, withdrawals from the exchange indicate that the investor is stockpiling the cryptocurrency that is kept outside of centralized exchanges.

The report also shows that Bitcoin gas prices are up 55% this week from the yearly low recorded last week. Outumuro noted that Ethereum gas prices are still “pretty expensive for bear market norms.”

Bitcoin suffers from low volume

The data also shows that Bitcoin’s 30-day volatility has dropped to a two-year low. As you follow, Bitcoin is currently trading above $19,000. He’s spent less than $20,000 overall since June. The largest cryptocurrency by market cap is stable at around 0.33% compared to the last 24 hours. Ethereum, on the other hand, is trading above $1,300 at similar rates. It has rebounded around 1.86% since last week.

How close is Ethereum to becoming a store of value?

ETH’s low inflation has helped it become a more scarce asset, especially after the merger. In his analysis, Lucas Outumuro writes in this thread:

  • The supply of ETH is now only increasing 0.03% per year, as many of the transaction prices were burned and issuances dropped by 90% after the merge.
  • Also, unburned prices are used to reward stakers, providing a precedent function to the GDP dividend that shareholders enjoy from the economic activity supported by Ethereum.
  • Finally, ETH is also indirectly accrued in value due to the maximum extractable consideration (MEV) where the (re)organization of processes creates opportunities for profits and therefore creates more demand to validate them.

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