The two largest cryptoassets, bitcoin (BTC) and ethereum (ETH), are on their journey of discovering new all-time highs. (Updated on February 1, 06:13 UTC, with the latest market data and comments from Elon Musk.)
On Sunday (06:08 UTC), ETH trades at USD 1,951, correcting lower from its new all-time high of USD 2,043. The price is down by 3.8% in a day, trimming its weekly gains to less than 8%.
High ETH fees are dampening the rally as DeFi users are migrating towards competing, more centralized chains such as Binance Smart Chain, while competitors are using every opportunity to criticize ETH.
However, at the same time, ETH supply available for trading has been decreasing recently:
- ETH locked in DeFi jumped by 16% in a bit more than a month, reaching ETH 7.7m (USD 15bn).
- ETH sent to the ETH 2.0 deposit contract, where it's being locked for many months, surpassed ETH 3m (USD 5.9bn).
- Grayscale Ethereum Trust received ETH 222,958 (USD 435m) since its reopening in February.
Meanwhile, at the same time, BTC is trading at USD 56,789, after it hit USD 57,851 yesterday. The price is up by 1.5% in a day and 21% in a week.
The prices of the two largest cryptoassets corrected after Tesla's Elon Musk said that "BTC & ETH do seem high." However, both BTC and ETH have rebounded since then with bitcoin showing more strength.
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