Ether Undergoing Highest Volatility Since May this Year
Ether (ETH), which is by and large the second largest cryptocurrencyin terms of its capitalization within the crypto industry and most popular cryptocurrency after Bitcoin (BTC), is undergoing a massive up on Wednesday, wherein it was able to see a trading volume upto $357 and closed at an average peak of 6% in less than 24 hours. It is said that this extra-ordinary increase in the volatility of Eth was the result of prevailing Covid-19 crisis due to which the traditional trading markets as well as bank notes had seen a humongous decline during the months of January to early days of September this year. Because the trading houses were closed during this time, majority of investors turned their attention towards cryptocurrencies and violently bought BTC and ETH.
According to the statistics and data, one-month volatility of Ether was recorded as high as 106% on an annualized basis which is much higher than what was recorded on May 6 this year. Due to its being able to fetch high volatility the word on the go in the crypto trading industry is that Eth has surpassed its competitor i.e. Bitcoin in terms of volatility. However in terms of value and volume still Bitcoin is way ahead of Eth.
In the words of the founder of Alpha5 which is a derivative exchange, Mr. Vishal Shah said that the DeFi, is paving a way for Ether as a result of which it has been able to attain high rate of volatility while negating the argument that derivatives within Ether had helped it to reach the mark by saying that the existence of derivatives in the cryptocurrencies are in fact culprit to any cryptocurrency.
Mr. Shah further lamented that since the market is relatively small in size, Eth’s success in acquiring high volatility was not optional but rather it is driven out due to the disbelief prevailing in the current gas market and uncertainty in the gas prices. The news has lighted up an atmosphere of fair competition between Eth and BTC which will ultimately benefit the owners of both, Eth and BTC.