Bitcoin has continued to surprise everyone in the crypto community in recent months, surpassing the former all-time high of $20,000 from 2017. Bitcoin is currently trading at just under $35,000, but the new hot topic of conversation is Ethereum. Because Ether (ETH), a cryptocurrency of the Ethereum ecosystem, has now also reached a new all-time high and increased to over $1,400.
According to data from Coingecko, ETH increased to a peak of $1,425, which corresponded to a double-digit percentage increase within 24 hours. A trading volume of more than $40 billion shows an interest of investors. ETH’s old all-time high was just under $1,400. It should be noted that ETH was trading at $730 at the beginning of this year and has therefore almost doubled in price. Ethereum now stands at around 20% of Bitcoin’s market cap, more than $158 billion.
ETH Price Increases: Key Reasons
The recent rise in Ethereum price comes as no surprise. The market cap of all cryptocurrencies increased enormously, and the interest of investors around the world is constantly increasing as well. Ethereum is considered a number 1 blockchain ecosystem and is a leader in decentralized finance. Almost all major DeFi apps run on the Ethereum blockchain, it’s currently the largest area of application.
It’s also possible that institutional investors are increasingly interested in Ethereum due to Bitcoin’s success. Actually, this interest may have been stimulated by the upcoming switch to ETH 2.0. Updates will be implemented in various phases over the next two years, which should make the Ethereum blockchain more powerful and, above all, more scalable. Recently, Ethereum has faced problems with scalability because the network is overloaded.
This led to an increased transaction duration and high transaction fees. If you’re willing to pay more fees, your transactions are preferred by miners. ETH will switch from PoW to PoS and implement solutions like sharding, which will fix these issues. PoS stands for ‘Proof of Stake’ and potentially gives investors with more ETHs more voting rights in the network, there will be no more miners. Sharding, in a greatly simplified manner, ensures that several blockchains operate in parallel, which means that more transactions can be processed per second.
Nowadays, ETH is stealing the show from Bitcoin and could continue to rise sharply in the next few days. Altcoins will benefit particularly from this. Historically, a sharp rise in ETH prices led to an increase in the altcoin market capitalization. The interest of investors is about to increase again when Ethereum 2.0 will be fully implemented.
Will Ethereum reach its new all-time high once again? Feel free to share your thoughts in the comments!