Ethereum hits record high, Bitcoin traders eagerly await bull market, Dogecoin holds it together but this coin remains king – Ethereum – US Dollar ($ ETH)


Major cryptocurrencies were vibrant on Tuesday night, with Ethereum (CRYPTO: ETH) hitting a new all-time high as the global cryptocurrency market cap rose 3.81% to $ 2.73 trillion.

What happened: The second largest cryptocurrency by market cap hit an all-time high of $ 4,599.95 on Tuesday night.

At time of printing, ETH was trading up 6.4% to $ 4,578.73 on a 24-hour basis. Over a seven-day period, it climbed 10.29%.

Bitcoin (CRYPTO: BTC) traded 3.73% higher over 24 hours at $ 63,066.43. In the past seven days, the apex coin has gained 4%.

BTC traded 5.79% below its all-time high of $ 66,930.39, which it touched on October 20.

Dogecoin (CRYPTO: DOGE) traded 1.62% higher at $ 0.27. For the week, DOGE is up 5.86%.

Rival Shiba Inu traded down 2.2% to $ 0.00006858 on a 24-hour basis. In the previous seven days, it has climbed 45%.

The best 24 hour winner was Loop (LRC), according to CoinMarketCap data. The Ethereum-based coin climbed 42.32% to $ 1.40. Over the week, it jumped 225.28%.

The announcement of a possible partnership with GameStop Corp (NYSE: GME) and high retailer interest recently pushed the LRC up.

See also: How to buy Ethereum (ETH)

Why is this important: Ethereum’s supply on exchanges has shrunk, but cryptocurrency is piling up more and more in smart contracts, according to Digital Delphi, an independent research boutique.

From August 2020 to Tuesday, the offer of ETH on the stock exchanges increased from approx. 27% to 12%, while ETH deposited in smart contracts hit new highs – rising from nearly 10% in June 2020 to 21% on Tuesday, Delphi Digital noted.

Chart showing Ethereum supply through exchanges and smart contracts – Courtesy of Delphi Digital

“The biggest tailwind driving this phenomenon is hot money looking for higher returns on Ethereum,” the analytics company wrote in an emailed note.

Ethereum experienced its very first deflationary week, according to Delphi Digital, thanks to increased on-chain activity and high gas prices.

“In addition to more liquidity leaving the exchanges and being stuck in smart contracts, a sustained deflationary scenario is likely to contribute to a supply shock as ETH becomes scarce amid rising demand.”

Meanwhile, BTC broke through the $ 64,000 level in intraday trading, which is a result of traders’ confidence in market performance in November and December, Cointelegraph reported.

On Tuesday, $ 949.7 million worth of BTC was transferred between two anonymous cryptocurrency wallets in a single transaction. The transfer could have been done for safe storage.

This week, another Bitcoin whale had moved $ 616,565,264 of BTC out of Coinbase Global Inc Platform. Removing coins from stock exchanges and storage reduces the pressure on the sell side.

Read more : Why is Ethereum-based JasmyCoin soaring today?

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