Ethereum has been rising for the better part of last week. The token got to an all-time high price of $3000.
Ethereum’s ETH, the second-largest cryptocurrency in terms of market cap, has recently reached an all-time high price of $3000. At the time of writing, ETH was valued at above $3050, according to CoinMarketCap. The token has also been doing well in major exchanges, including Coinbase, Binance, and Bybit.
Valued above major Companies
The new price of Ethereum has pushed it to a higher valuation above that of Walt Disney and the Bank of America. Its market cap currently stands at above $357 billion. This is a 24% growth over the past week, according to metrics provided by CoinMarketCap.
The coin’s most significant competitor, Bitcoin, has not been doing as well as Ethereum, but it is still retaining its market dominance. The crypto currently has a market cap of around $1.07 trillion, which is slightly lower than the valuation of Silver, which is approximately $1.41 billion. Bitcoin’s valuation is higher than that of Facebook.
The increasing valuation of Ethereum also shows that the token’s value may surpass that of Bitcoin. Doing this would boost the value of Ethereum to become the leading cryptocurrency in the world.
Factors contributing to the rise of Ethereum
Multiple factors are being attributed to Ethereum’s rise in value. There has been a rise in activity on Ethereum’s blockchain, especially from institutional investors. Last week, the European Investment Bank stated that it would issue a two-year digital bond valued at $121 million. The bond would be issued in a partnership with Goldman Sachs.
DeFi protocols on Ethereum have also been recording an increase in retail interest. Because of this, the total value locked now stands at more than $100 billion. One of the factors causing an increased interest in Ethereum is the highly anticipated launch of ETH 2.0, a layer 2 solution created to solve major issues on Ethereum’s mainnet.
ETH 2.0 is expected to resolve the high transaction fees and enhance speed on the platform. David Hoffman, a host for Bankless, stated that Ethereum’s upgrade is similar to Bitcoin halving. Bitcoin’s halving takes place every four years, and this process has a positive contribution to the value of Bitcoin.
Ethereum is also facing competition from major layer 1 and layer 2 protocols. The increased popularity of the use of Ethereum by DeFi developers has been causing a surge in Ethereum’s fees. However, it is increasing competition from other similar solutions such as Binance Smart Chain.