Since this week, there have been substantial cash inflows into smart contract networks, notably Ethereum, Cardano, and Solana. On-chain analytics platform, Santiment, claimed that the surging demand for decentralized solutions might be the reason for this funds inflow.
Short Order Liquidation Volume Soars
After ETH price surged past the $3K level, Santiment’s data feed observed a massive increase in liquidation volume for sell orders on the ETH market. According to the Santiment data, this surge in price gives ETH bulls complete control over the bears as ETH price sets a new 3-week peak.
📈 #Ethereum has enjoyed another leg up Wednesday, jumping above $3,000 after yesterday's first breach above this resistance level in three weeks. #Shorts were really piling up following yesterday's brekout, leading to plenty of $ETH liquidations today. https://t.co/cIOc62l3B8 pic.twitter.com/bp0eol3zte
— Santiment (@santimentfeed) March 23, 2022
The increasing liquidation volume spurred other traders to minimize their losses as they deliberately terminated their sell orders. Apart from surging past the 50-day MA, the second leading digital asset also surged past the February-formed descending channel. Other indicators also indicated bullishness, with the RSI value now about 60.
A Recovery Phase
Data from various on-chain metrics indicate that nearly all the top digital assets (including Ethereum) are in the recovery phase. The data also agreed that cash inflows towards derivatives such as options and futures are fueling this recovery phase. As previously reported, Bloomberg analysts predicted that BTC is about to be bullish after noticing a sharp rise in its funding rate.
Even though ether remains within the primary resistance range, it surged past the 50-day ma after several retests dating as far back as February 10. ETH remains above the $3K level with almost zero selling pressure on the crypto market, indicating that the bullish momentum isn’t about to be over.
Like Ethereum, other smart contract networks are also experiencing slight bullish momentum, with both of them gaining 5% during the morning session. Crypto analysts predict a rise in ETH price as more ETH continues to leave crypto exchanges. As of March 24, nearly 155K ETH have been withdrawn from crypto exchanges, as confirmed by recent data by another crypto analytics platform, IntoTheBlock.
Also, the latest Cryptorank data showed that only 11.4% of ETH’s circulating supply is left on exchanges. It is the first time in nearly four years that this low amount of ETH will be on exchanges.
The Amount Of TRON-Issued USDT Surpasses Ethereum’s
Over the last couple of months, the TRON blockchain has achieved impressive results. Among these results is the amount of USDT issued on it, which is now more than on Ethereum. A TRON DAO tweet revealed that the amount of USDT issued on TRON is now 40.6B, which is in stark contrast to Ethereum, which currently stands at 39.81b according to the current Etherscan data.
These data showed that the amount TRON issued on TRON is 800m higher than that on Ethereum. Many TRON members consider this a big win for the TRON community, given that no network has ever surpassed Ethereum in terms of the amount of USDT issued on their network.