The cryptocurrency market has rebounded over the past 24 hours by around $17 billion, from $365 billion to $382 billion. Major cryptocurrencies including bitcoin, Ether and EOS increased in the 3 to 7 percent range, pushing the cryptocurrency market towards the $400 region.
Ether, the native cryptocurrency of the Ethereum blockchain network, has been the best performing cryptocurrency amongst major digital assets in the likes of bitcoin, EOS, and Cardano. The price of Ether recovered to $713, rising by more than 5 percent.
The daily trading volume of Ether has started to near its previous levels in early January and February, during a period in which the price and volume of Ether achieved an all-time high. The rise in the volume of Ether has demonstrated the increase in the demand for cryptocurrencies from investors in the global market, especially in regions like Japan and South Korea.
According to CryptoCompare, a cryptocurrency market data provider, the daily trading volume of bitcoin and other cryptocurrencies in Japan and South Korea had significantly dropped from May 15 to 18, by nearly 30 percent.
Some experts including Bithumb and UPbit executives previously stated that the imposition of impractical policies by the South Korean government led the volumes of exchanges to fall, but it remains unclear as to why the volume of Japanese exchanges suddenly fell within a 3-day period. It is possible that rumors surrounding bitFlyer caused the market to lose confidence temporarily, as the volume of the Japanese market started to recover after bitFlyer executives refuted rumors of potential hacking attacks.
As seen in the chart below, the volume of bitcoin has continuously declined since it tested the $10,000 support level earlier this month. After reaching $9,900, the price of bitcoin dipped below $7,900 and the volume of the global market declined.
Unlike bitcoin, the daily trading volume of Ether has been relatively stable and in comparison to its volume in January, when the valuation of the cryptocurrency market was still in the $500 billion region, the volume of Ether has not fallen substantially. As such, in the short-term, it is highly likely that Ether will outperform most cryptocurrencies in the market.
Investors in the cryptocurrency market often reallocate their funds in major cryptocurrencies to tokens and small-scale cryptocurrencies if they start to become more confident in the short-term future of the market.
Over the past 24 hours, tokens such as 0x (ZRX), Aelf (ELF), and Polychain (POLY) increased by around 10 to 20 percent, signifying the improvement of market conditions and increase in confidence from investors in the global cryptocurrency market. With the exception of some tokens such as DigixDAO, Binance Coin, and Storm, the majority of tokens outperformed bitcoin over the past 24 hours, gaining by more than 5 percent in value.
Earlier today, Tom Lee, an analyst at Wall Street firm Fundstrat, stated that the cryptocurrency market did not benefit from the Consensus 2018 event, which Fundstrat previously described as a potential catalyst that could lead the cryptocurrency market to rebound.
Featured image from Shutterstock.
Last modified: May 20, 2020 8:47 PM UTC