February 20, the cost of the second largest cryptocurrency Ethereum in terms of capitalization exceeded $ 2 thousand. Since the beginning of the year, the ETH token has risen in price almost in 2 times.
As a result of the rise in price, the total cryptocurrency capitalization grew by 6% and exceeded $ 233 billion. And the daily volume of token trading exceeded the $ 40 billion mark.
Powerful catalysts of Ethereum
Experts attribute the growth of Ethereum to the success of Bitcoin. Since the price of altcoin has risen against the background of the rise in price of bitcoin. Last night, its market valuation exceeded $ 1 trillion for the first time. After that the asset’s quotes continued to rise. Bitcoin has updated its all-time high at around $ 56.6 thousand.
The growth of cryptocurrency quotes accelerated after the largest owner of bitcoin among public companies, MicroStrategy, announced plans to increase its investment in the asset by $ 900 million.
However, Ethereum also has its drivers for growth. Including the successful launch of ETH futures on the Chicago Mercantile Exchange (CME). The BeInCrypto editorial staff previously reported that a week after the start of trading, the average daily volume of transactions in ETH futures exceeded $ 5 billion. Contrary to the expectations of some analysts, Ethereum didn’t repeat the fate of Bitcoin, which fell after the launch of futures trading.
Ethereum and Bitcoin: differences and similarities
Ethereum is a cryptocurrency and platform for building decentralized blockchain-based online services. Developers can create different applications on its network. Ethereum differs from Bitcoin because it is used only as a currency or store of value. At the same time, Ethereum is similar to Bitcoin in that it is based on blockchain technology.
New records ahead
Analysts are confident that the ETH has not yet exhausted its bullish potential. They cite the rapid development of the decentralized financial (DeFi) industry and the influx of institutional money among the main catalysts for the growth of the second largest digital coin.
The popularity of non-fungible tokens will be another growth driver for ETH. According to the latest research, over the past year this segment has grown by 300%. And this trend will gain momentum. Given that most NFTs are built on the Ethereum ecosystem, demand for the coin and network activity will grow along with interest in new assets.
Ethereum is the most famous and largest altcoin. It attracts the attention of not only experienced traders, but also novice users of the cryptocurrency community.
While Ethereum hitting $ 2,000 would normally be a big news event, this time around, the record went almost unnoticed. Amid new records of Bitcoin, including reaching a market value of $ 1 trillion and rising nearly $ 5,000 in 24 hours.
After the establishment of a new bitcoin record, the analogous success of Ethereum was only a matter of time. The statistical marketplace support this conviction. For example, in 2017, the gap between two assets that reached their peak value was 27 days; after three years, this gap also made 27 days.
Let’s add to this the fact that from the moment of launching ETH 2.0 the prices for the asset have grown by 160%. It is becoming a really good investment for new participants.
Note that the prerequisites for the increase in the value of the cryptocurrency to previously unheard-of heights began to appear in early January. But then the Ethereum was prevented by a short-term market correction, caused by the rollback of the price of bitcoin from 40 thousand dollars to 30 thousand. ETH’s growth has also been fueled in recent weeks by the rapid depletion of its reserves in storages of centralized exchanges.
This blockchain platform is quite popular, so Ethereum price prediction is a popular topic in the market.
In general, experts’ forecasts are optimistic. Analysts at Fundstrat Global Advisors LLC believe that Ethereum is on the verge of a phenomenal bullish trend that will push the second-largest cryptocurrency by capitalization to $ 10,500.