Ether’s price has been on the downward slope for a while now. The second largest cryptocurrency in the market lost up to 25% of its value within a 7 day period. Some analysts believe that the downtrend was intensified by the questionable sell-offs of Ether related to the upcoming launch of the EOS Mainnet.
Is EOS the Culprit?
At the time of writing, Ether was trading at $523.58. Bitfinex is recording exceptionally high Ether trading volumes. This means that the trading on Bitfinex is playing a huge role in the price crash. Within 24-hours, Bitfinex has recorded over $250 million worth of trades in Ether. This is almost double the amount that was traded in OKEx which recorded $110 million.
TrustNodes reported that about 180,000 Ether was sold within one hour on Bitfinex on Sunday. This is above the average hourly trading volume. OKEx traded at a stable volume of 20,000 Ether per hour.
Over the last four days, EOS has spent about $1.4 million in Ether and $400,000 out of this amount was exchanged within the last 24-hours.
EOS is Hoarding Ether
According to the reports from TrustNodes, EOS spent about $950 million in Ether early in April. The deal was made under its parent company block.one. EOS still has about 237,000 Ether held up in EOSCrowdsale and 916,000 in EOS-Owner. That’s about 1.1 million Ether for EOS.
The increase in trading volume on Bitfinex came around the same time EOS was officially listed on the exchange. There has been some speculation that this competing platform for smart contracts may be connected to the dip in the price of Ether over the last few days leading to the Mainnet launch.
Currently, EOS is trading at $10.96 with a market capitalization of $9.7 billion. No one knows if Ether will bounce back from this fall. However, the cryptocurrency market is unpredictable so anything can happen.