Altcoin and Ethereum (ETH) enthusiasts have reason to celebrate as the market experiences a notable surge in trading volumes and market share. The latest data from Kaiko indicates that altcoins, in combination with ETH, now account for 60% of the total spot trading volume relative to Bitcoin (BTC), marking a significant milestone in over a year.
In the previous year, the ETH to BTC Ratio consistently declined, mirroring the lackluster performance of ETH and the broader altcoin market. However, a recent development has sparked renewed optimism in the ETH community asset management giant BlackRock’s filing for an exchange-traded fund (ETF) specifically focused on Ethereum.
The news of BlackRock’s ETF application breathed fresh life into the ETH to BTC Ratio, pushing it to new heights. As of November 13, the ratio stood at 0.05607, representing a remarkable 10% increase since the ETF application was submitted on November 9 as per Kaiko research. This swift turnaround in sentiment has reignited interest in ETH, resulting in a substantial surge in trading volume on centralized exchanges.
According to research conducted by crypto analytics firm Kaiko, daily spot trade volume for ETH reached an impressive $7 billion following the ETF announcement. This figure is the highest it has been since the cryptocurrency exchange FTX’s collapse in November 2022.
In addition to the spike in trading volume, the altcoin market share has also experienced a notable uptick since BlackRock’s ETF filing. Anticipating a sustained price rally, participants in the futures market are increasingly seeking leverage as the prices of leading altcoins continue to climb. Currently, ETH is valued at $1,986.99 per coin, based on data sourced from CoinMarketCap.
Furthermore, ETH’s open interest in futures has rebounded to levels reminiscent of the market-wide liquidation event that transpired in August. At the time of writing, ETH’s open interest stands at $7.17 billion, a strong indicator of growing confidence in the altcoin’s future performance.
The resurgence of altcoins, led by Ethereum, in both trading volumes and market share highlights the impact of BlackRock’s ETF application and renewed optimism in the crypto community. As ETH continues to gain momentum, investors and traders are eagerly eyeing the potential for further price rallies and market dominance.
