The overall crypto market is currently going through a bearish phase, but Ethereum [ETH] still managed to lead the stablecoin market cap growth over the past week.
According to Token Terminal data, Ethereum’s stablecoin market capitalization increased by $243.4 million, followed by Arbitrum One with $108.6 million and Base with $51.1 million.
Together, these three networks recorded a $403.1 million increase in stablecoin market capitalization in the past seven days.
Ethereum is making headlines but…
However, this growth does not automatically mean that more users are entering these networks or there will be an increase in price.
This is because ETH was trading at $2,492.27 at press time after a modest drop in the past 24 hours but a 7.1% drop in the past week. Interestingly, this comes soon after a recent report by AMBCrypto, which highlighted that ETH has found a new support around $2,535–$2,559, with $2,565 emerging as a key level to watch.
At the same time, the RSI was trading slightly above the neutral line, suggesting that the bulls were there but not that strong. Whereas, the narrowing Bollinger bands hinted at low volatility and price consolidation.
Meanwhile, the ETH ETFs saw outflows worth $634.80 million in October so far.
Are the metrics too bleak at the moment?
Additionally, Ethereum’s derivatives market for the month of October further suggests that leveraged positioning is beginning to cool.
According to the chart, Ethereum’s total Open Interest (OI) in USD rose sharply from around $12 billion in mid-August to nearly $18 billion in late September, indicating increased capital committed to outstanding ETH futures and derivatives positions.
However, OI subsequently declined, reaching approximately 15.42 billion by the 10th of October. Meanwhile, the Network Realized Profit/Loss indicator fluctuated around zero during October, with occasional positive and negative spikes before nearing -121K.
So, for Ethereum, the key question now is whether OI stabilizes as ETH prices move or continues declining. This in turn could help determine whether traders are rebuilding conviction or becoming more cautious.
Final Summary
- Ethereum, Arbitrum One, and Base recorded a $403.1 million increase in stablecoin market capitalization in the past seven days.
- Meanwhile, Ethereum’s derivatives market for the month of October suggests that leveraged positioning is beginning to cool.