Major cryptocurrencies were buoyant Tuesday night, with Ethereum (CRYPTO: ETH) hitting a new all-time high as the global cryptocurrency market cap rose 3.81% to $2.73 trillion.
What Happened: The second-largest cryptocurrency by market cap touched an all-time high of $4,599.95 on Tuesday night.
At press time, ETH was trading 6.4% higher at $4,578.73 over 24 hours. Over a seven-day trailing period, it has spiked 10.29%.
BTC traded 5.79% below its all-time high of $66,930.39, which it touched on Oct. 20.
Dogecoin (CRYPTO: DOGE) traded 1.62% higher at $0.27. For the week, DOGE has risen 5.86%.
Rival Shiba Inu traded 2.2% lower at $0.00006858 over 24 hours. In the preceding seven days, it soared 45%.
The top 24-hour gainer was Loopring (LRC), as per CoinMarketCap data. The Ethereum-based coin shot up 42.32% to $1.40. Over the week, it has soared 225.28%.
See Also: How To Buy Ethereum (ETH)
Why It Matters: Ethereum’s supply on exchanges has been dwindling but the cryptocurrency is increasingly accumulating in smart contracts, as per Delphi Digital, an independent research boutique.
From August 2020 until Tuesday, ETH’s supply on exchanges fell from approx. 27% to 12%, while ETH deposited in smart contracts touched new highs — rising from nearly 10% in June 2020 to 21% as of Tuesday, noted Delphi Digital.
Chart Showing Ethereum Supply Across Exchanges And Smart Contracts — Courtesy Delphi Digital
“The biggest tailwind that’s driving this phenomenon is hot money searching for higher yields on Ethereum,” the analysis firm wrote in an emailed note.
Ethereum experienced its first-ever deflationary week, as per Delphi Digital, thanks to a rise in on-chain activity and high gas prices.
“In addition to more liquidity leaving exchanges and being locked up in smart contracts, a sustained deflationary scenario will likely contribute to a supply shock as ETH becomes scarcer amid rising demand.”
Meanwhile, BTC crossed the $64,000 level in intraday trading, which is a result of confidence traders have in the market’s performance in November and December, reported Cointelegraph.
On Tuesday, $949.7 million worth of BTC was transferred between two anonymous cryptocurrency wallets in a single transaction. The transfer could have been made for safe storage.
This week, another Bitcoin whale had moved $616,565,264 of BTC off of Coinbase Global Inc’s platform. The removal of coins from exchanges and into storage reduces sell-side pressure.