Home News Ethereum breaks away: Several factors power ETH all-time high push

Ethereum breaks away: Several factors power ETH all-time high push

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Ethereum cryptocurrency has updated its all-time high on the crypto exchange. On the morning of May 2, the Ethereum rate was over $ 2900. According to CoinGecko, the rate of the second largest cryptocurrency by capitalization rose to $ 2,961.56. Cryptocurrency increased by 2% per day, and in April Ethereum soared by 45%. Altcoin has surpassed PayPal in terms of capitalization.

In general, the capitalization of the cryptocurrency market is more than $ 2.29 trillion.

Usually, altcoin dynamics depend on Bitcoin, but in March things went differently. This drove Bitcoin’s market share down to a three-year low. Moreover, the Bitcoin dominance index continues to decline, the share of the first cryptocurrency fell to 46.5%. While in Ethereum it grew to 14.7%.

The more active growth of Ethereum can be explained by the higher rates of development and renewal than that of Bitcoin, analysts say. In their opinion, investors are eagerly buying cryptocurrencies, which are showing constant development.

Experts say that one of the main factors in the current momentum of altcoin growth is the expectation of the July EIP-1559 update. It will allow burning part of the miners’ fees.

Institutional players lead the current rally of Ethereum

Experts believe that institutional players are behind the current rally of the coin – over the past 7 days, large transactions worth $ 116 billion have been made. The total outflow of assets from exchanges for the period amounted to $ 10.45 billion.

Guggenheim CIO Scott Minerd in an interview with Bloomberg also pointed to the growing interest of large investors in the second largest cryptocurrency by capitalization. “I think institutional money is moving towards things like Ethereum and some of what I call more reliable cryptocurrencies”, he said.

The day before, analysts at Fundstrat in their weekly report predicted a further rise in the Ethereum rate to levels above $ 10,000 in 2021. Moreover, analysts expect Ethereum to perform better this year than Bitcoin.

In their opinion, there are three main reasons for this:

– more stable liquidity;

– less dependence on derivatives – less leverage;

– a stronger demand base – DeFi and other segments.

Experts of the Kraken exchange admitted that the quotes of the coin reached the mark of $ 15,000. In their opinion, the price of Bitcoin will approximately double during this time.

New growth after correction

Analysts warn that after reaching the level of $ 3 thousand, a certain correction may occur. However, in the long term, a serious rise in the Ethereum rate is expected. By some estimates by hundreds of percent. It is worth waiting for a local correction by 5-10% and opening a long-term position.

In principle, investor attention is shifting from Bitcoin to the second largest cryptocurrency and other segments such as DeFi and Web 3.0.

Note that during the week, the BNB tokens of the Binance exchange and the UNI DeFi-project Uniswap, included in the top 10 rating by capitalization, updated their historical highs.

According to Messari, the most profitable coin of the week was the SNM of the decentralized cloud computing project SONM – an increase of over 1,053%. The top ten was closed by the OKB token of the OKex exchange. Which added almost 125% in price and climbed into the top 20 in terms of capitalization.

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