Ethereum (ETH), the second largest digital asset by market value, has finally surpassed $ 2,000 and set a new record of $ 2,042.
At the time of writing, ETH is trading at $ 2,000, gaining over 5% in the last 24 hours and over 200% since the beginning of the year. While the market value of Ethereum has exceeded 230 billion dollars, the average daily transaction volume has exceeded 40 billion dollars.
The price increase can be attributed to a number of positive key developments, including the successful launch of ETH futures on CME and increased corporate demand.
Strategists at CoinShares believe that besides Bitcoin, even Ethereum has recently become the most popular asset for institutional investors. In addition, Messari co-founder Qiao Wang said ETH has the potential to reach $ 5,000 and there is “absolutely no reason” for traders to sell long-term shares anymore. Moreover, as an indicator of long-term trust in Ethereum, the 2.0’s deposit contract recently surpassed $ 3 million ETH.
In addition, analysts from Fundstrat Global Advisors LLC say that ETH is on the verge of a major upward trend that will eventually push the token price above $ 10,000. The report pointed out that as the overwhelming majority of DeFi projects are built on the Ethereum blockchain, a rapidly growing decentralized finance (DeFi) industry will be instrumental in the strong growth of ETH.
Apart from that, the emerging non-exchangeable token (NFT) industry is also supporting ETH growth. The total value of transactions in the NFT sector grew by about 300% in 2020 and the trend will continue. While ETH has been limited in price charts for a while, it should be noted that there are few indications of imminent events. For example, according to Santiment, on February 14, the number of whales with more than 10,000 ETH rose to 1,287, “heralding this success”.
With these developments, the price of Ethereum has responded positively to the upward momentum and once again set an all-time high in 2021.