ETH trading volume plummeted after the whale sold off from a dark Thursday








The spike in ETH trading volumes seen in February disappeared amid the economic crisis and the Covid-19 pandemic devastating the world.


As the macroeconomic trend took center stage, much of the cryptocurrency sector was left in the dark - a sideline player in the worsening crisis, Ethereum was no exception. The smart contract platform has seen a significant decline in transaction volume since a sharp increase in February.


ETH trading volume decreased


According to analysts, the United States and much of the world is currently in recession. The high unemployment figure has made hope for the future increasingly gloomy. As we can see, the cryptocurrency market has witnessed diminishing interest as the public focuses on more pressing concerns such as food storage and toilet paper. This is perhaps most evident when we look at Ethereum-related trading activity, which has seen a significant decline.


Skew report ETH trading volume has decreased as traders are focusing more on macroeconomic trends. Players who are still in the cryptocurrency market are mostly focused on Bitcoin.



However, the price movement of ETH, continues to follow BTC as one might expect. The most obvious is when BTC fell about 50% on a dark Thursday, the whole market was similar. At such times, it seems safe to say that the macroeconomic indicators are at the center stage and the rest of the cryptocurrency market must always look at how Bitcoin responds.


Whale sold off


Two interesting developments have taken place over the past few weeks amid a decline in this number. First, as Bitcoin Magazine reported on Black Thursday, many ETH holders sold out of their coins. Although they accumulated in February, this turned out to be a short-term gamble.


Second, Ethereum's competitive advantage and focus is decentralized finance (Defi), which has witnessed a sharp decline in the context of the economic crisis and the corona pandemic. The locked-in value for DeFi-related contracts has dropped by more than 50% in the past few weeks, a staggering number considering it topped $ 1 billion in early March.



Source: defipulse.com


As of now, it's not clear how the cryptocurrency market will perform in the short term. According to technical analysis, Ether is in a historical reversal area. Although that may happen, we should not overlook the very terrible macroeconomic indicators. Therefore, historical trends may not keep up if the world economic situation gets worse.


You can see the price of ETH here.


Sima Zhao


According to BeInCrypto




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