Ethereum investment products increased by 2.36% to $6.81 billion in assets under management (AUM) in August. Ethereum products also showed growth in trading volumes.
A study by CryptoCompare found that ETH-based investment products and their trading volumes rose over the past month despite the bearish trend in the crypto market.
According to the report, Ethereum’s AUM performance rose by 2.36% in August. The open-source project Go Ethereum (GETH) saw the most significant growth, up 23.2% over the month. Meanwhile, similar indicators of Bitcoin decreased by 7.16% during the month. AUM of other digital assets in August also showed a considerable decrease — by 4% in total.
Recently the first cryptocurrency has fallen below $20,000 again amid plunging stock markets, while ETH continues to rise. According to CoinGecko, the price of ETH rose to $2,025 throughout August, dropping to $1,632 only by the end of the month.
Analysts at CryptoCompare report that Ethereum products now account for 26.5% of total AUM, which is the largest market share for Ethereum since the beginning of the year. Ethereum investment products recorded inflows of $6.4 million per week in August, which is also the highest among crypto AUMs.
Analysts attribute this growth to the core network’s upcoming transition to PoS scheduled for September.
The big event for the Ethereum network also opens up new opportunities for institutional ETH investors, whose number is growing, and for ETH holders. For example, Ethereum 2.0 staking has become available on the largest mining pool, Ethermine. The new service offers pool members a chance to freeze at least 0.1 ETH (~$159) and receive 4.43% per annum on deposited funds.
You can read about expectations investors may have after the main Ethereum network upgrade and about the pros and cons of The Merge in the op-ed.
However, ETH investors suffered a blow the other day. Compound, a major lending platform, reported a bug in the update code, causing all cETH transactions to be canceled. Through the Compound protocol, Ethereum 2.0 stakers not only receive interest from frozen funds, but are also able to trade wrapped cETH tokens. Due to the bug, the entire Compound Ethereum marketplace (cETH) was paralyzed, and users’ funds were frozen.
Recall that the Ethereum Foundation team increased the rewards for finding vulnerabilities in the network ahead of The Merge to $1 million.
