ETH surged above $ 2,000 as it continues a year-long bull run.
ETH hit a new record of $ 2,042, corresponding to a 6.18% increase in 24 hours, a market cap of $ 233.3 billion. Prices have risen 172.5% year-to-date.
While ETH hitting $ 2,000 is the latest event, it will almost certainly be overshadowed by the many milestones already reached a few hours ago from BTC including reaching a market cap of $ 1 trillion. first dollar and up almost $ 5,000 over a 24 hour period.
But it should not be overlooked that ETH’s increasing move and increasingly positive popularity. At least three areas of increasing demand are driving the price rise of ETH: decentralized finance (DeFi), staking Ethereum 2.0 and a newly formed ETH futures market focusing on this institution. Chicago Mercantile Exchange (CME).
Often compared to oil, ETH powers the Ethereum blockchain. The network is best known for hosting numerous DeFi applications such as loan markets, transactions and prediction. Ethereum-based applications create a natural utility for ETH because this cryptocurrency is required to settle transactions. DeFi coins have followed ETH’s jump as shown by the DeFi Momentum Index (DPI), up 83% over the past 30 days, according to Index Coop.
Staking on the Ethereum 2.0 network is also creating a shock in the supply of support for digital assets. ETH 2.0 is an ongoing redesign of the Ethereum network based on a new consensus mechanism known as PoS and database analysis. Approximately 2.7% of all $ 6 billion worth of ETH has been deposited into the ETH 2.0 blockchain. Those funds will be locked for about the next 12 months.
Finally, large investors like hedge funds may be interested in cryptocurrency exposure. CME launched a futures contract that can be cashed out for the digital asset on Feb. 8. The contracts surpassed a total volume of $ 160 billion in the first week. Since CME is one of the oldest and most trusted exchanges in the United States, the launch of contracts there could signal increasing institutional acceptance of ETH.
Prepare for a major uptrend
The second largest digital asset is fueled by a host of positive fundamental developments including the successful launch of ETH futures on CME and increased institutional demand.
Analysts from Fundstrat Global Advisors LLC say that ETH is preparing for a massive uptrend that will ultimately push the price of the token above $ 10,000.
The report indicates that the booming decentralized finance (DeFi) industry will be instrumental for the strong growth of ETH, as the majority of DeFi projects are built on top of the Ethereum blockchain.
In addition, the emerging non-fungible token (NFT) industry is also fueling the growth of ETH. Total transaction value in the NFT sector has grown by nearly 300% by 2020 and this trend will continue.
According to a study conducted by NonFungible.com and the foresight company L’Atelier BNP Paribas, the industry will become the main driver of the virtual economy by 2021.
The crypto market is on fire as the first digital currency BTC hit a new ATH above $ 56,000 on Feb. 19, while its market value surpassed $ 1 trillion for the first time in history. la.