Good morning, Asia. This is what makes news in the market:
As Asia begins trading days, ETH has been trading above $4,600, up 10% over the past 24 hours. Some traders believe that ETH is likely to be able to challenge its highest ever highest in 2021 at $4,876.
Polymake bettors are taking it a step further. They believe $5,000 is possible by the end of August, and there is a 28% chance that the asset’s price will exceed $5,800 before the end of the month.
The surge helped to lower Bitcoin control from 65% to 59% as traders turned into altcoins.
In a recent report, GlassNode analysts wrote that ETH is currently approaching the “active real-price” band, which is around $4.7k.
But behind the scenes there is a growing fluidity sink that weighs heavily on the next stage of growth in ETH.
New cryptographic reports show that Ethereum is increasingly acting as a source of liquidity for Tron’s USDT ecosystem.
On August 9th, cryptographic data shows that a record $7.7 million worth of ETH was bridged to Tron and converted to USDT, but on June 25th, ERC20 tokens worth $19 million, mostly USDC, did the same move.
The inflow from Tron to Ethereum remains minimal, supporting Tron’s stubcoin economy but underscores a one-way flow of value that sucks up liquidity from Ethereum’s native defi activity.
Over time, sustained outflows can weigh spot demand, reduce Ethereum’s ongoing fee revenue, and secure rewards as more stubcoin economies are cleared elsewhere.
If this trend continues, Ethereum’s role may be increasingly similar to that of the wholesale funding class, promoting liquidity in rival networks rather than capturing transaction activity itself.
That dynamic may not derail current gatherings in the short term, but if capital flights to faster, cheaper settlements like Tron continue to be checked, it could limit the sustainability of higher valuations.
But for now, the market is turning its eye towards 5k ETH.
Market Movers
BTC: Bitcoin keeps $119,943 (+0.4%) intact, but resistance is looming in the $123,000 range amid ETF spills and ETH rally.
ETH: ETH is trading above $4,600 due to the high potential for a 50 bps rate reduction.
gold: Gold was extended to around $3,350 as US inflation data tightened its Fed rate cuts while US trade tensions eased limited profits.
S&P 500: The S&P 500 and NASDAQ reached record highs as CPI data in July met expectations, boosting bets on the Fed rate cuts in September and lifting tech stocks.
Nikkei 225: The Asia-Pacific market opened at the top on Wednesday, with Japan’s Nikko 225 rising 1% after Tuesday’s record close.
