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Ether breaks $500-billion market cap for the first time

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A few days ago, the cost of Ether surpassed $ 4000 per unit for the first time. The success of the second most popular cryptocurrency in the world didn’t end there, and it continues to grow steadily. Over the past day, the Ethereum rate has grown by about 10% and reached a record $ 4350 per unit. Thanks to this, the level of capitalization of the digital asset exceeded $ 500 billion. At the time of publication of this note, Ethereum was trading at $ 4250 per unit.

It is noteworthy that Ether has become the second digital currency in the world, whose market capitalization has exceeded the $ 500 billion mark.

It took Ether significantly less time to become a half trillion dollar asset. Launched in January 2009, it took Bitcoin almost 12 years to reach a market capitalization of $ 500 billion in December 2020 at over $ 27,000. Ether is now almost 6 years old.

At present, the total value of Ethereum is greater than the capitalization of the investment holding JPMorgan Chase, which estimated at $ 480 billion. At the beginning of this year, ether overtook the financial conglomerate Bank of Amerika. Also the PayPal payment system in terms of capitalization.

At the same time, the currency has every chance of maintaining the current bullish trend. Because the London hard fork will be released in July, within which most of the fees for transfers in the network will be irretrievably burned. It can significantly reduce the number of coins in free circulation. A shortage of supply may well push the currency quotes to new historical heights.

This state of affairs will be beneficial not only for long-term Ether holders, but also for GPU miners, whose profits have continued to set new records in recent weeks.

Growth forecasts

According to Megan Kaspar, co-founder and managing director of the investment company Magnetic, by the end of the year Ethereum will rise in price to $ 8,000 – $ 10,000. Approximately the same estimates regarding the growth of Ethereum were given by analysts of Fundstrat Global Advisors. Earlier they predicted a rise in the price of this cryptocurrency to about $ 10,500.

But this is not the limit: according to Kaspar, against the background of the announced major update of Ethereum EIP 1559, which implies a decrease in the number of tokens, for several years active investments in this cryptocurrency can push its value to the $ 100,000 mark!

Ether investors are more active than ever

Ethereum investors have increased their activity in the past few weeks amid the rise in the cryptocurrency rate. Just yesterday, the Finance Magnets service recorded the movement of 46793 units of “ether” from a digital wallet to the Binance cryptocurrency exchange. In addition, on May 11, a transfer of 137,832 Ethereum units to an anonymous cryptocurrency wallet was recorded. It is equivalent to a $ 560 million transaction.

The most expensive cryptocurrency in the world continues to be Bitcoin, which at the time of this writing was trading at $ 56,100 per unit. The total capitalization of bitcoin is about $ 1.1 trillion. It is worth noting that in terms of capitalization, the top three includes the Dogecoin cryptocurrency. The total value of which estimated at $ 69 billion.

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