The Ethereum blockchain’s cryptocurrency Ether has crossed the $ 3,000 mark for the first time in the past 24 hours, rising to $ 3,138 according to CoinMarketCap data.
With this rise, Ethereum surpassed organizations such as Walt Disney Company and Bank of America in terms of market value. The world’s largest smart contract-compliant tier blockchain has gained 24 percent in one week and its market cap reached $ 346.72 billion, according to tracking site Infinite Marketcap. By comparison, Bitcoin, currently with a market value of $ 1.079 trillion, is just above Facebook with a market value of $ 923.12 billion and just below silver with a market value of $ 1.416 trillion.
This remarkable rise of Ether has also rekindled the debate that Ethereum could replace Bitcoin as the world’s largest digital currency.
There are several reasons behind the rise of Ether: On-chain activity continues to increase, the European Investment Bank announced last week that it will partner with banks such as Goldman Sachs to create a two-year digital bond worth $ 121 million, and individual interest in DeFi continues to grow. The value locked in the DeFi market exceeded $ 100 billion.
On the other hand, the “London” hard fork with the EIP-1559 update in the Ethereum fee structure and the transition to the proof-of-stock consensus model may be what investors are waiting for. These updates to the network will significantly reduce transaction fees as well as reduce the amount of ETH rewards given to miners. This, in turn, is expected to ease the selling pressure on ETH.