After Ethereum traded above $ 1,000 for more than two weeks, it finally climbed above the $ 1,400 level. Ethereum broke the previous all-time record, climbing over $ 1,420 three years later.
According to TradingView, the price of the second largest cryptocurrency by market cap is currently around $ 1,423 on Coinbase. The all-time high price was reached in January 2018.
There are many reasons for Ethereum’s rapid rise, and the momentum is expected to continue into 2021. Number one, and perhaps the most important of all, is the decentralized finance area (DeFi). The total value locked in DeFi is experiencing an increase and ETH turns this into an advantage.
In December last year, the zero phase of the long-awaited update of Ethereum 2.0 was launched. So far, the amount of ETH locked in the contract is equivalent to 2,500,000 ETH, and the development of the ETH 2.0 Ethereum update is in full swing. This is thought to have a positive effect on the price.
In addition, the CME Group (the first company to launch BTC futures in December 2017), the largest institutional exchange working with crypto derivatives, announced on February 8 that ETH-based futures for financial institutions will be launched.
Another reason is the general bullish mood in the market. The entire cryptocurrency market broke a record a week ago, exceeding $ 1 trillion for the first time in history.
ETH is currently in an area it has never tested before. So how it will act at this point is unclear. After breaking ATH on several exchanges, ETH can enter new regions and, like Bitcoin, can break records in unexplored regions one after another.