After receding under $4,000, Ethereum is leading a market recovery of altcoins. Entering December, the second-largest cryptocurrency has gained more than 7%, making it the best performing crypto in the top 10.
Ethereum’s recent gains helped it reach an interday high of $4,780 – just 1% shy of its all-time high of $4,850 recorded on November 10. In the last 24 hours, ETH holds out marginal gains as it now trades at $4,742.
The five days price chart of Ethereum (ETH). Source: TradingView
While Ethereum’s recent performance is laudable, it pales in comparison to its year-to-date gains. Since the start of 2021, when ETH traded at $736, Ethereum has gained more than 530%, outperforming the world’s largest crypto, Bitcoin, which has doubled its price in 2021.
The year-to-date price chart of Ethereum (ETH). Source: TradingView
Ethereum’s recent gain is partly driven by the prospects of its blockchain platform forming a part of the metaverse. Ethereum, which is home to both non-fungible tokens and decentralized applications (dApps), has been tipped to play an important role in the future of the metaverse.
On the Flipside
- Despite its remarkable growth, Ethereum is yet to solve the issue of high fees, which has long plagued the network. Minting an NFT on Ethereum will generally cost between $60 and $250
Ethereum’s support for multiple use cases has made it popular among institutional investors, who pushed $23 million into ethereum products last week. Also, logging the fifth consecutive week of inflows.
Why You Should Care
Approaching its all-time high, while Bitcoin sits 15% shy of its, shows Ethereum could be stepping out of Bitcoin’s shadows