Data shows that Binance users reacted aggressively to the news of the Ethereum exchange-traded fund (ETF) by clamoring for the cryptocurrency.
Binance’s Ethereum net taker volume hits record high.
As CryptoQuant Community Manager Maartunn explained in his post
Here, “net taker volume” refers to an indicator that tracks the difference between ETH taker buy volume and taker sell volume on a specific centralized exchange.
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A positive value for this indicator means that taker buying or long volume is currently outpacing taker selling or short volume on the platform. This trend suggests that bullish sentiment prevails among investors.
On the other hand, a negative indicator suggests a majority bearish mindset among exchange users, as short selling outweighs buying.
Now, here is a chart showing the trend of Ethereum Net Taker Volume on cryptocurrency exchange Binance over the past few years:
As shown in the graph above, Binance’s Ethereum net taker volume has just seen a huge spike, with insinuating investors just opening massive buy positions on the platform.
More specifically, the indicator was valued at $530 million during this surge, which according to analysts is the largest surge ever for a cryptocurrency.
“Binance traders are craving Ethereum ETF news like there’s no tomorrow,” says Maartunn. This isn’t particularly surprising, considering the market is well aware of what spot ETFs could mean for the asset after witnessing Bitcoin’s decline.
ETF news pre-approval was bullish for BTC, and while the approval itself initially led to bearish price action, the asset eventually paid off as capital quickly began flowing in through these investment vehicles and the coin enjoyed a rally. It broke an all-time high (ATH).
In another X post, CryptoQuant analysts pointed out that Ethereum Open Interest has also surged. “Open Interest” measures the total amount of ETH-related positions currently open on all derivatives exchanges.
This trend is not unexpected, given that derivatives users have been opening large long positions in these assets. This rapid surge caused Ethereum Open Interest to set a new ATH.
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Historically, intense speculation has typically made coins more volatile. This is because the risk of large liquidations occurring during such periods may increase. Therefore, this surge in public interest could signal some turbulent times ahead for Ethereum.
ETH price
Ethereum, which has so far been on the rise thanks to the ETF news, has surpassed the $3,800 level, a milestone the coin has not reached since mid-March.
Featured image from Shutterstock.com, CryptoQuant.com, chart from TradingView.com