ETH on track to advance its 2018 ATH as Bitcoin breaks $37,000
The ETH on track to advance its 2018 ATH as Bitcoin breaks $37,000
Earnings from ETH surpassed $1,200 for the first time in almost three years, extending its weekly earnings to 62%.
The upward fervor surrounding ETH intensified on Wednesday, when the second largest crypto currency surpassed $1,200 for the first time in three years. The gains were largely driven by a confluence of fundamental factors, including the Bitcoin parabolic rally, the anticipation of ETH’s futures contracts and a booming DeFi sector.
The price of ETH exceeds $1,200
The value of ether hit a high of $1,223.84 in Bitstamp, the highest since January 2018, just before the market peaked. At the time of printing, ETH was up 8% and trading was just over $1,210. The crypto-currency has risen more than 60% over the past week, bringing its total market limit to $135 billion.
At the present rate, the Ethereum looks set to break its previous record of $1,432.88, possibly in the next few days.
The Bitcoin makes the whole market go up
As the year 2021 increases, Bitcoin’s gravitational pull on the crypto-currency market has intensified. The crypto currency’s flagship has just peaked north at $37,150 and is still rising.
In the last month, Bitcoin has risen almost 90% thanks to growing institutional interest and a reduction in supply that limits the available supply. Ether and other digital assets have benefited from Bitcoin’s leadership pace. In fact, there’s some evidence to suggest that institutional investors are looking to ETH as Bitcoin’s trade fills up with players with bigger pockets.
The CME is preparing to launch ETH futures
The CME Group has also identified a growing institutional interest in the Ethereo and has announced plans to launch a new ETH futures product next month.
From February 8th, traders will have the opportunity to bet on the Ethereum through regulated exchanges. The new futures product, known as CME’s CF Ether Reference Rate, will provide traders with more efficient exposure to the digital asset, allowing for wider price discovery and possibly greater adoption in institutional circles.
DeFi’s boom is not over
Although the DeFi craze seems to have subsided after last summer’s record highs, the ecosystem is growing at the same rate as the overall market. As of Wednesday, virtually all DeFi currencies in the top 20 have reported double-digit weekly gains, some even exceeding the explosive growth of the Ethereum price.
Since many DeFi projects are built on the Ethereum, the subclass has a positive impact on the price of the ETH. According to CoinMetrics, the DeFi boom could fuel the long-term growth of the Ethereum.
In addition, industry data reveal a substantial increase in the total blocked value, or TVL, of DeFi projects. At last count, nearly $21.7 billion had been blocked in the ecosystem, the highest on record.