Key Points
- Ether continues to outperform Bitcoin, maintaining its rally amid market volatility.
- Over $27 million in Ether short liquidations occurred due to the asset rising above $3,600.
Ether’s performance in the cryptocurrency market has been impressive, with the digital asset maintaining its rally and outperforming Bitcoin. This comes as market volatility has triggered a surge in short liquidations.
Impact of Market Volatility
Ether short positions have suffered the most as the asset’s value rose above $3,600 on Monday. Data from Coinglass reveals that over $27 million in Ether short liquidations took place in the last 24 hours. In the broader cryptocurrency market, liquidations exceeded $204 million during the same period.
Ether’s value increased by around 1% in the last 24 hours, trading at $3,605 at 4:38 a.m. ET.
Factors Driving Ether’s Rally
Luke Nolan, a research associate at CoinShares, suggests that the announcement of BlackRock’s tokenized fund on Ethereum last month could be a long-term bullish factor for the digital asset. The choice of a public blockchain over a private one and the selection of Ethereum over other layer 1 alternatives demonstrate Ethereum’s security, liveness guarantees, and robust developer base.
Nolan also highlighted the ETH/BTC pair, which is currently at multi-year lows. Historically, when Ether has been undervalued, it has gone on to outperform Bitcoin for several weeks or even months.
However, Nolan does not expect the U.S. Securities and Exchange Commission to approve a spot Ether ETF in May. He suggests that the lack of dialogue from the SEC and subsequent amendments from issuers is a negative sign. However, he also notes that the market is not expecting approval, so a rejection is unlikely to significantly impact prices.
Other Cryptocurrencies
In contrast to Ether’s sustained rally, Bitcoin has declined by 1.47% in the past day, falling below the $70,000 mark. Solana also experienced a price correction, falling by 3.62% in the past 24 hours to $175.60 at 4:38 a.m. ET.
The global cryptocurrency market cap stands at $2.78 trillion today, a slight increase of 0.2% in the last 24 hours. Bitcoin’s dominance is at 49.9% and Ether’s dominance is at 15.7%, according to Coingecko data.
The GM 30 Index, which represents a selection of the top 30 cryptocurrencies, has increased by 1.42% to 151.88 in the past 24 hours.
