130 Interactions, 2 Today
Proof-of-stake cryptocurrencies are appealing to investors, with Ethereum leading the way.
According to a new analysis from analytics firm Coinshares, though the market decline may not have halted, prices are currently at levels where stock market investors are expressing renewed interest in digital asset funds.
A report published yesterday from Coinshares shows that multiple funds have begun seeing net inflows after weeks of record outflows in the wake of a crippling, market-wide crypto dip. In totally, legacy markets poured in $74 million into crypto investment vehicles, though not all products showed signs of strength.
Cryptocurrencies show inflows after record outflows in previous two weeks.
— unfolded. (@cryptounfolded) June 2, 2021
While some analysts predict that Bitcoin will fall to as low as $16,000 per BTC, Bitcoin products were among the worst performers, with a $4 million nett outflow. According to the research, altcoins — notably more environmentally friendly proof-of-stake altcoins – outperformed, with Cardano, Ripple, and Polkadot funds each receiving more than $3 million in inflows.
However, Ethereum is the actual star of the piece. ETH vehicles received a total of $47 million in inflows, accounting for the bulk of nett digital asset fund investments and increasing ETH vehicle market dominance to 27%.
Investors’ positive stance on the asset follows a spate of positive studies from university and institutional finance research desks. Both the University of Pennsylvania and Goldman Sachs published papers this week pushing for Ethereum as a store of wealth, owing to its prominence in the DeFi ecosystem.
A variety of technical improvements and headwinds are also on the horizon for the world’s largest layer one smart contract platform. Arbitrum, a layer two scaling solution, recently went online with a cautious launch, and the long-awaited gas charge redesign of EIP-1559 is scheduled for later this year, as is a shift to a proof-of-stake consensus architecture.