Ethereum, the world’s second most valuable digital asset, saw massive outflows during the last seven days amid significant volatility in its price.
According to the latest digital asset weekly fund flows report published by crypto asset management firm CoinShares, Ethereum investment products saw approximately $50 million worth of outflows last week, the largest number on record.
Overall, crypto investment products saw a fourth consecutive week of outflows as the total of $44 million left digital asset investment products. Since the second week of May, the negative crypto market sentiment resulted in net weekly outflows worth $313 million, nearly 0.8% of the total digital assets under management. In contrast to the latest jump in Ethereum outflows, Bitcoin saw minor outflows worth $1.3 million.
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“Multi-digital asset investment products continued to buck the negative trend with inflows of US$6m last week, suggesting that investors continue to favor digital assets but are keen to diversify. This week most of the negative sentiment was focussed on Ethereum where net outflows totaled US$50m, the largest on record. These outflows represent 5% of the US$943 inflows year-to-date,” CoinShares mentioned in the report.
Ethereum Price Action
Ethereum touched an all-time high of $4,300 on 12 May 2021 and crossed the market cap of $500 billion. Since then, the price has been in a downtrend. The negative crypto market sentiment has caused a sharp drop of more than 50% in the price of ETH. Despite the overall negative sentiment, the price of Ethereum saw a strong recovery since the start of this week. ETH jumped from $1,800 on Monday 28 June to as high as $2,130 during the Asian session on 29 June. As of writing, Ethereum is trading above $2,100 with a market cap of approximately $245 billion.
According to the latest data compiled by crypto analytics and blockchain firm Santiment, the top 10 non-exchange Ethereum whale addresses are now holding more than 19 million coins, the highest level on record.