Coronavirus Effect? Ethereum’s On-chain Trading Volume Soars by 69% in 24 Hours

While the recent outbreak of China’s Coronavirus poses as a threat to humans and the economy, such situations could be used as a scale to determine assets that are safe haven for investors looking to protect their wealth.

A report published by a global crypto-asset market data provider, Xangle, suggests that the disease outbreak resulted in a downward performance of the traditional assets, with crypto assets seeing otherwise.

For instance, S&P 500, a stock market index that tracks 500 large-cap companies, closed down 1.6% on Monday, which is reportedly the second straight drop and sharpest decline as of October 2, 2019. This clears off much of the gains it incurred since the year start.

Is Bitcoin, Ether a Safe Asset?

On the side of digital currencies, assets like Bitcoin (BTC) and Ether (ETH) are responding positively to the recent development. According to Xangle, about 18 of the best performing tokens soar in price. 

The uptrend could be related or backs the objections that cryptocurrencies are possibly another safe asset, as they acted in the same manner as Gold, which is mostly considered to be a reliable asset. 

Gold made significant progress, hitting a new three-week high of $1581.90 as reported yesterday. However, the asset is currently down by $2.40, according to Market Insider.

Ether Price and Transactions Performance

While Bitcoin continues to record significant increase, Ethereum and Litecoin’s on-chain activity indexes saw a remarkable surge in one day, according to the data from Xangle

Ethereum’s 24-hour on-chain trading volume accounted for a 69.02% increase ($189 million) higher than the previous day. Also, the number of new wallets and transactions worth over $1 million increased by 60.47% and 400% respectively.

The second-largest cryptocurrency Ether is currently seeing a 2.74% increase in value to worth $172.69, at the time of writing). It has a 24-hour volume of over $11 billion, according to Coinmarketcap.

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