Ethereum Following Bitcoin Bull Run - ETH Trading Over $2k.
2021-02-20 | Big Bob
ETH is trading above $2k for the day as the native cryptocurrency of the Ethereum blockchain continues its year-long
Bullish Run.
In line with CoinMarketCap, Ethereum [
ETH, +5.14%] hits
a new record of $2,033 USD, up 6.18%
within the last 24 hours, with the
market capitalization of the cryptocurrency reaching $233.3 Bln. The cryptocurrency is up 172.5% year-to-date.
While ether hitting $2k would normally be a stop-the-presses-type event, it almost certainly can be overshadowed by
the various milestones reached hours before by larger sibling bitcoin [
BTC, +7.82%] including hitting a $1 trillion
market price for
the primary time and rising almost $5k within a 24-hour period.
But the rise of ETH and surging popularity
shouldn't be overlooked.
A minimum of three growing areas of demand are fueling
the rise in ether’s price: decentralized finance [DeFi], Ethereum 2.0 staking, and a newly formed institutionally focused ether market on the CME.
Often compared
to grease, Ethereum powers interactions on the Ethereum blockchain that is best known for hosting
a spread of DeFi apps
like lending, trading, and prediction markets. Ethereum-based apps formed a natural utility for ether as the cryptocurrency is required to settle transactions. DeFi coins have followed lockstep with ether as shown by the DeFi Pulse Index [DPI], up 83%
within the last 30 days,
consistent with Index Coop.
Staking on the Ethereum 2.0 network
is additionally creating a supply shock of supports for the digital asset. Eth 2.0 is an in-progress redesign of the Ethereum network
supporting a new consensus mechanism called PoS and database sharding. Some 2.7% of ether worth $6 Bln has been deposited on the Eth 2.0 blockchain. Those funds are further locked for roughly subsequent 12 months.
Additionally, large investors
like investment could also be curious about gaining some exposure to the crypto assets. CME launched cash-settled futures contracts for the digital asset on 8
th Feb. The contracts surpassed $160 Bln in aggregated volume within
the primary week. As the CME is
one among the oldest and most trusted exchanges
within the United States, the contract launch there may signal growing institutional acceptance for Ethereum.
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