Coinbase premium shows inflow of fresh capital into Ethereum
In the past few weeks, the only factor preventing analysts from considering a new bull run has been the lack of fresh money coming onto the market. However, a premium on Coinbase's Ethereum rate suggests that the inflow of new capital has started to hit the entry-level stock market and could trigger an explosive rally in the coming weeks.
Ethereum is traded at Coinbase at a premium to Tether exchanges
There is no denying that all systems appear to be ready for the next crypto bull run. Bitcoin shows a number of bullish factors and Ethereum has doubled in value over the course of the year so far.
However, many leading cryptanalysts and whales across the industry are skeptical of the recent bull rally, claiming that no new money has come to the crypto market for some time.
But as the rally drove prices higher and higher, it may have triggered a slight FOMO fall among private investors. The surge in interest in cryptocurrencies like Ethereum means that the number two cryptocurrency by market cap on Coinbase is trading again at a premium over other platforms.
Coinbase is one of the most important Fiat gateways that crypto investors use to enter the market. From there, they often send their cryptocurrencies to other platforms to trade there.
Since Coinbase is a fiat gateway, the price of Ethereum, Bitcoin or other crypto assets starts at a premium to exchanges that offer these crypto assets and altcoins paired with tether when new capital begins enter. The increasing demand for crypto assets traded against the dollar leads to a divergence between the different platforms.
Will the return of the Fiat inflow trigger the next big bull run?
At the start of the recent Ethereum rally, prices at Coinbase and Binance were pretty much the same. When the first big peak was reached, the premium grew in Coinbase's favor. By the second peak, the premium had risen to over 1, 50 dollars per ether.
What is certain is that Ethereum was trading at a premium on Coinbase, and if it really means the return of the Fiat inflow to the crypto market, it could be the spark that will spark the next big bull run.
Proof of text: newsbtc