Ethereum has managed to break through the $3,300 price mark for the very first time in its history. Investors will be overjoyed at this news, as their patience has been greatly rewarded. As it stands right now, Ethereum is the world’s second-biggest cryptocurrency and the largest altcoin in terms of market capitalization. Now though, it can also boast about having one of the highest prices in the entire industry, right behind Bitcoin, which has a current price of just over $58,000. As of the time of this writing, the ETH price is currently $3,357. Ethereum is also the world’s biggest platform for smart contracts.
Of course, there are several reasons as to why Ethereum has managed to reach such a high price, and this article shall be analyzing a few of them in detail.
A huge milestone for ETH
ETH had managed to go as high as $3,392 on the popular exchange platform Binance, in addition to achieving the same milestone on various other exchanges, including the likes of Coinbase, BitMEX, and By bit.
What is perhaps most impressive is the fact that this spike has assisted Ethereum in its efforts to overtake both the Bank of America and even The Walt Disney Company in terms of overall market capitalization. Furthermore, layer one (which is smart contract enabled) has managed to experience a growth of 24% during the week to eventually culminate in a whopping $346.7 billion.
Bitcoin, on the other hand, has managed to outgrow Facebook in terms of market cap and is just under the overall market capitalization of silver. Bitcoin’s current market cap is just about $1.08 trillion. Nevertheless, BTC’s performance has been quite slow when compared to altcoins such as Binance Coin (BNB) and even DOGE, but it is ETH that the world’s flagship cryptocurrency would have to worry about as experts predict that Ethereum could eventually replace Bitcoin in the distant future.
Different reasons for Ethereum’s success
There are several reasons that one must observe in order to understand Ethereum’s recent rise. Firstly, we must look at the spike in activity that has been occurring on the chain itself. This activity includes actions taken by major institutions as well, as just earlier on during the week, the European Investment Bank had made it known that it shall be issuing a 2-year digital bond that is worth just over $120 million, and that this shall be in collaboration with other similar entities like Goldman Sachs.
Secondly, retail interest in the world of decentralized finance (DeFi) has been rapidly increasing lately, with the overall value-locked numbers managing to reach ridiculous highs of over $100 billion. Lastly, it is the upcoming July update that is said to hopefully reduce gas and transaction fees that can also be looked at as a possible cause for Ethereum’s recent success.