CEO Jonathan Miller of Kraken Australia mentioned that the buzz surrounding the implementation of El Salvador’s Bitcoin Law may be seen as one of the “heady causes” driving Bitcoin’s recent advances.
According to Kraken’s August report, Ether supply on centralized exchanges fell to a three-year low of 12.8 percent at the beginning of the month, implying that “the risk of supply shock capitulating ETH higher is increased.”
Miller said that coming up to Ethereum’s highly anticipated London upgrade, Kraken observed “a big run-up of trading activity,” and that demand for Ether has remained strong since then.
Miller attributed recent crypto rallies to the craze surrounding NFTs, in addition to the buzz surrounding Ethereum upgrades and EIP-1559 going live.
According to a weekly moving average, the NFT platform had a 289 percent increase in daily users and a 900 percent increase in transaction volume during August, according to Kraken’s study.
“I think there’s a bit of a natural curtailment happening,” he said, adding: “The combination of Bitcoin being […] dragged up a little bit by Ethereum, Ethereum getting very hot because of all the activity on NFTs, I think there’s a bit of a natural curtailment happening.”
“When you’re starting to see Sootheby’s auctions and the numbers going around for NFTs — these are high levels. We always see corrections when we get to all-time highs. I think it’s a natural part of the cycle.”
“Bitcoin has rebounded strongly after a brief fall. “We know it does this,” he continued.
Miller also mentioned the buzz surrounding the implementation of El Salvador’s Bitcoin Law as one of the “heady causes” driving Bitcoin’s recent advances, admitting that some investors may have planned to sell on the Salvadoran news:
“The timing of the El Salvador thing, I don’t think you could ignore it […] This is a pivotal turning point in terms of the adoption story for Bitcoin.”
“I saw two images on Twitter of individuals buying McDonald’s and Starbucks with Lightning in El Salvador,” he added.