In a notable turn of events, Ethereum's price has moved relatively slowly compared to Bitcoin (BTC) and a number of altcoins, yet the price of Ethereum has declined against the world's second-largest token by market capitalization. An interesting phenomenon seems to be attracting notable optimism. According to recent reports, Ethereum tokens appear to be showing a significant increase in liquidity on centralized exchanges around the world.
This draws significant attention to ETH and highlights the increased availability of ETH tokens to be traded on exchanges, further demonstrating the growing interest and activity surrounding the token within the exchange ecosystem.
ETH Liquidity: Digging Deeper
On the other hand, despite the token's relatively slow price movement, ETH's increased liquidity showed increased confidence and participation by traders and investors within the market. This potentially contributes to the long-term stability and market presence of the token, and could add a bullish tinge to Ethereum as the BTC halving approaches.
The 2% market depth, which measures the volume of buy and sell orders across exchanges, has increased significantly from an annual low of $255 million in October to an impressive $400 million today.
These developments signal the resurgence of market makers, who facilitate trading by providing liquidity. Additionally, traders have more opportunities to buy and sell ETH, suggesting they are benefiting from improved market conditions.
Also Read: Bitcoin Whale Causes 800BTC Drop, Concerns After CPI Data Release
BTC and ETH OI reach ATH
Meanwhile, open interest in BTC and ETH perpetual futures contracts has surged to unprecedented levels in USD. Transactions of perpetual contracts have shown steady growth since the beginning of the year, reaching a two-year peak in early March and then hitting a new record high.
This further highlighted the growing interest in the asset among traders and investors in the cryptocurrency market, further reinforcing the bullish view on the token.
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