USDC, SVB saga fuels massive profits for Ethereum [ETH] as Shanghai looms

ambcrypto.com:

The aftermath of the collapse of SVB and Signature bank has been felt by the stablecoin market and various holders alike. However, Ethereum [ETH] managed to benefit from the chaos that ensued following these events.

Read Ethereum’s Price Prediction 2023-2024

According to data provided by Token Terminal, Ethereum managed to earn a profit of $10 million over the last few days. Ethereum managed to achieve this feat despite the decline in daily active users on the network. This, due to the fact that the volume of trading activities and swaps appreciated during this period.

Source: token terminal

Thanks to the high activity on the Ethereum network, the overall gas being used on the network rose as well. The uptick in activity on the network was also accompanied by a surge in ETH’s prices.

This surge in price impacted traders who were holding short positions against ETH.

In fact, according to Glassnode, the short liquidations for Ethereum on Binance hit a 2-year-high of $15.09 million.

Source: Santiment

At the time of writing, a significant majority of traders held positive sentiments. This was evidenced by the growing number of long positions being taken by traders for Ethereum.

Source: coinglass

One of the reasons behind the growing number of long positions could be the fact that many addresses holding ETH are still not profitable.