Asia Morning Briefing: Polymarket Bettors Foresee $5K ETH by End of August

2 hours ago

Good Morning, Asia. Here's what's making quality successful the markets:

Welcome to Asia Morning Briefing, a regular summary of apical stories during U.S. hours and an overview of marketplace moves and analysis. For a elaborate overview of U.S. markets, spot CoinDesk's Crypto Daybook Americas.

As Asia begins its trading day, ETH is trading supra $4600, up 10% successful the past 24 hours, arsenic the anticipation of a complaint chopped successful September works its mode done the market. Some traders spot it apt that ETH could quickly challenge its all-time high of $4876 acceptable successful 2021.

Polymarket bettors are going a measurement further; they judge that $5000 is possible earlier the extremity of August, and they are besides giving a 28% accidental of the asset's terms crossing $5800 earlier the period ends.

The surge has helped pull bitcoin dominance down from 65% to 59% arsenic traders rotate into altcoins.

In a caller report, analysts astatine Glassnode wrote that ETH is present nearing the +1 modular deviation “Active Realized Price” set astir $4.7K, a level that has triggered dense selling successful past cycles.

But down the scenes, there's a increasing liquidity descend that mightiness measurement heavy connected ETH's adjacent signifier of growth.

A caller CryptoQuant report shows that Ethereum is progressively serving arsenic a liquidity root for TRON’s USDT ecosystem.

On Aug. 9, CryptoQuant information shows that a grounds $7.7 cardinal worthy of ETH was bridged to TRON and converted into USDT, portion June 25 saw $19 cardinal worthy of ERC20 tokens, mostly USDC, marque the aforesaid move.

Inflows from TRON backmost to Ethereum stay minimal, highlighting a one-way travel of worth that supports TRON’s stablecoin system but siphons liquidity from Ethereum’s autochthonal DeFi activity.

Over time, persistent outflows tin measurement connected spot request and trim Ethereum’s ongoing interest revenue and staking rewards arsenic much of the stablecoin system clears elsewhere.

If this inclination persists, Ethereum’s relation could progressively lucifer that of a wholesale backing layer, powering liquidity for rival networks alternatively than capturing the transactional enactment itself.

That dynamic whitethorn not derail the existent rally successful the abbreviated term, but it could bounds the sustainability of higher valuations if superior formation toward faster, cheaper colony layers similar TRON continues unchecked.

But for now, the marketplace has its eyes connected $5K ETH.

Market Movers

BTC: Bitcoin holds $119,943 (+0.4%) with bullish momentum intact, though absorption looms astatine $123K amid ETF outflows and ETH’s rally, according to CoinDesk's marketplace insights bot.

ETH: ETH is trading supra $4600 arsenic the anticipation of a 50 bps complaint chopped looms large.

Gold: Gold edged up to astir $3,350 arsenic U.S. ostentation information reinforced Fed complaint chopped bets, portion easing U.S.-China commercialized tensions constricted gains.

S&P 500: The S&P 500 and Nasdaq deed grounds highs arsenic July CPI information met expectations, boosting bets connected a September Fed complaint chopped and lifting tech stocks.

Nikkei 225: Asia-Pacific markets opened higher Wednesday, with Japan’s Nikkei 225 up 1% aft a grounds adjacent Tuesday.