- Ethereum outperforms itself to surpass the $3,000 mark for the first time in its history over the weekend.
- It continued its meteoric rise to reach an all-time high
- Ethereum rise steals the shine from Bitcoin, cementing its place as the second-largest cryptocurrency in the world with a market capitalization of over $400 billion.
- Ethereum’s run is largely due to the proposed upgrades on the network, the burgeoning DeFi market, and the recent reports of the European Investment Bank (EIB) trading Ethereum digital bonds
Ethereum enthusiasts are grinning ear to ear as the asset exceeded all expectations to break through the $3,000 mark in what has been described as a historic weekend for the digital currency.
Currently trading around the region of $3,260, Ethereum has repaid the faith of its believers with the recent price rally as a worthy alternative to Bitcoin. This rise has seen the market capitalization rise to unprecedented highs and its market share rise to 16.41%.
3-3-3 Vitalik Buterin’s Magic Is Potent
The numbers around Ethereum’s blistering run of form are the stuff of legend as the numbers seem to be in consonance. The coin broke through the $3,000 mark and climbed by over 1,300% within the last 12 months.
This weekend has proven to be a decisive one for the second-largest cryptocurrency by market capitalization as it increased its market share by 16.41% reducing the huge chunk held by Bitcoin to 46.74%. Ethereum’s rise in the last 24 hours indicates a whopping 12.36% while the gains in the last 7 days indicate a 32.56% increase.
Ethereum extended its lead over Binance Coin (BNB) which currently trades at $676.97 and has a market capitalization of over $103 billion and has a market dominance of 4.50%.
At the moment, Ethereum trades at around $3,200 and enthusiasts are confident that this run is not a fluke citing a myriad of convincing reasons as proof that Ethereum is headed to the moon. The wide range of functionalities embedded in Ethereum and the recent growth of NFTs and DeFi are among the reasons for the unwavering belief in cryptocurrencies.
On the Flipside
- Ethereum miners plan a 51% attack against the network in response to the proposed EIP-1559 update.
- The update which is scheduled for July 2021 has the potential to significantly reduce the mining rewards accruable to the miners.
- Despite the proposed protests, the buzz around the update has sent Ethereum prices through the roof.
The Reasons for Ethereum’s Ascendancy
Ethereum’s rise over the weekend has been ascribed to the reports that the European Investment Bank (EIB) which is the investment arm of the EU sold $121 million worth of digital bonds on the Ethereum blockchain. The decision of the EIB to use the enterprise-grade functionality of Ethereum was seen by many as a stamp of approval for the network.
Another reason that has been advanced for the growth of Ethereum is the proposed upgrades designed to remedy the defects associated with the network. One such upgrade is the EIP-1559 that is touted to pump the price by reducing the overall supply of ETH. Another proposed upgrade is Ethereum 2.0 that offers lower transaction costs and is designed to ensure the smooth running of the network.
Aside from upgrades, the rise of DeFi and the boom of NFTs is another reason for the rise in the value of cryptocurrencies as several protocols utilize Ethereum for the operations of their service. At the moment, the DeFi crypto market is at $130 billion while the NFT market capitalization seats at $32 billion.