Ether has recently reached an all-time high of $2750. This has increased its market value past that of PayPal Holdings.
Ethereum is the second-largest cryptocurrency, and it has recently made a historical record in the crypto market. The crypto recently hit a $2750 value, which pushed its market value to $320 billion. With this market cap, the cryptocurrency was able to set a higher valuation than PayPal Holdings.
Ethereum’s Price Movement
According to the latest market valuations, Ethereum has increased by over 11% in the past week. In the past 24 hours, the crypto has also grown by around 3%. This significant price movement has been caused by increased demand for the currency by retail and institutional investors.
PayPal has a valuation of approximately $318 billion. This means that with the $320 billion valuation recorded when ETH was trading at $2750, the crypto is now ahead of PayPal. Since the recent $200 billion recovery of the crypto market, ETH and Binance Coin have come out on top in terms of performance.
The Ethereum 2.0 deposit contract was launched last week, which led to $9 billion being staked in ETH. The current value of the network upgrade now has a total valuation of around $11 billion with over 4 million in ETH at stake.
Increased Institutional Demand for Ethereum
CoinShares has recently released a report that shows a significant growth in institutional adoption for Ethereum. Products associated with the crypto have raised $34 million in the past week and $792 million since January 2021.
The latest price movement for Ethereum comes after the European Investment Bank announced plans to set up a digital bond on the Ethereum network. The sale for the two-year digital bond, which is valued at $121 million, will be spearheaded by Goldman Sachs, Banco Santander, and Societe Generale.
However, the backing by big banks is not the only factor pushing Ethereum numbers. The increase in decentralized finance is also being attributed to the surge. Currently, the Ethereum mainnet has around 2 million DeFi users.
The other factor contributing to the positive performance is a reduction in the ETH being held on exchanges, showing that holders of this currency are not selling. ETH is being used in platforms such as DeFi, which currently has 11 million ETH with a valuation of around $29 billion.
Besides, there is also a lot of Twitter activity from Ethereum supporters, pushing the demand for the cryptocurrency.