Ethereum’s ETH token overshadowed the psychologically significant $ 3,000 per brand today, rising to Binance’s $ 3,003 at the time of publication. The price of ETH reached a milestone on several major exchanges, including Bybit, Coinbase and BitMEX.
The increase has helped Ethereum outpace institutions such as The Walt Disney Company and Bank of America in terms of total market capitalization. The largest layer-one with an intelligent contract activated grew 24% during the week to $ 346.72 billion on the Infinite Marketcap tracking website. By comparison, Bitcoin currently has a market capitalization of $ 1
The remarkable performance even sparked renewed speculation that Ethereum could “reverse” bitcoin, outpacing BTC as the world’s largest digital currency.
Many opposing winds share responsibility for the rise of Ethereum. The first is a steady jump in activity along the chain, including from institutional entities: earlier this week, the European Investment Bank announced it would issue a two-year $ 121 million digital bond in partnership with banking organizations such as Goldman Sachs. Retail interest in DeFi has also been growing recently, with the total value of the locked values reaching astonishing peaks of over $ 100 billion.
However, the London hardfork, which includes the EIP-1559 revision of Ethereum’s fee structure, as well as the subsequent upcoming transition from ETH 2.0 to a consensus model for proof of participation, may be the main events investors expect. These network upgrades are expected to significantly reduce fees, as well as reduce the amount of ETH rewarded for miners – which in turn is expected to reduce asset pressure from sales.
David Hoffman, host of the educational media company Ethereum Bankless, equates the various initiatives to the equivalent of three separate “halflings”, an event that takes place approximately every four years, with the subsidy for the bitcoin block halved. It is believed that the halves contribute to the rise in Bitcoin prices.
# The three halves of Ethereum are not priced
– DavidHoffman.eth Ξ (ruTrustlessState) April 22, 2021
However, Ethereum has some competition in the form of other layer-one circuits with activated smart contract. Ethereum’s growing popularity is partly to blame for excessive chain transaction fees (although they have weakened somewhat in recent weeks), and the lack of viable layer 2 scaling solutions as aggregates means that many competing chains have seen an increase in activity.