New Record: Investments In Ethereum In The First Quarter Of 2020 Exceeded The Two-Year Volume
Analysts note that Ethereum is showing increased trading activity and is likely to significantly strengthen its market position. This is confirmed by statistics: for the first quarter of 2020, the influx of Ethereum amounted to a record amount of 110 million US dollars. Over the past two years, a total influx of Ethereum of $95.8 million was recorded.
These data were first announced by the head of the largest Grayscale Investments cryptocurrency fund. It was previously reported that cryptocurrency began to attract institutional investors more. As a result, in the last two years, the volume of investments in the cryptocurrency of the fund has significantly increased. According to Grayscale, in the first quarter of 2020, $503.7 million was raised in a crypto fund. If this trend continues, 2020 may be the most successful for the company in terms of the number of funds raised.
By the volume of investments in the crypto fund, Bitcoin remains in the first place. The total quarterly inflow of investments in BTC is
$388.9 million. Given that Ethereum has almost doubled its annual inflow, this can be regarded as increased competition between the two popular crypto assets.
On Twitter, DTC Capital CEO Spencer Nun said:
“We see that ETH demand has grown among institutional investors. This is evidenced by the dynamics of inflow in the first quarter of 2020. This amount exceeded the total over the past 2 years. ”
What caused the increase in demand for Ethereum?
Analysts note that the change in the vector of investor interest is directly related to the Bitcoin crisis. After the crushing collapse of BTC prices on March 12 and 13 to the level of $ 4,600, a significant part of investors questioned the stability of the flagship cryptocurrency. Despite the recovery of BTC at the end of March, investors are still skeptical about it.
This confirms the outflow of investments from Bitcoin to Ethereum. In particular, in the first days after the collapse of Bitcoin, the volume of investments in Ethereum was ahead of the flagship cryptocurrency. This situation clearly demonstrates the fear of many analysts that Bitcoin may lose its safe-haven status.
Thus, it is likely that the year 2020 can radically swap key figures of cryptocurrency market players. The economic crisis, the fluctuation of the Bitcoin exchange rate could be the beginning of the Ethereum star trek.