It has passed 4 thousand dollars!

Ether (ETH) crossed a psychologically significant limit of $ 4,000 on May 10 for the first time in history. Cryptocurrency reached $ 3,000 just a week ago.

4-hour candlestick chart of the ETH / USD pair (Coinbase). Source: Tradingview

ETH surpassed Bank of America on the list of world’s largest assets last week. With a market capitalization of $ 474 billion as of today, Ether surpasses companies such as Walmart and Johnson & Johnson on the list, and is placed just below JPMorgan Chase, the largest bank in the US in terms of managed assets.

One of the reasons behind this rise of crypto money is the increase in institutional interest. Institutional investors purchased over $ 30 million ETH at the end of April, according to the report CoinShares shared last week. Investments made by asset managers in Ether and ETH tools are thought to reach $ 13.9 billion.

In addition, the growth of decentralized finance, one of the key uses of Ethereum, is driving the rise of cryptocurrency.

One of the biggest reasons behind the increase in the price of Ether is the EIP-1559 and ETH 2.0, two updates to the network. The EIP-1559, which is planned to be included in the “London” hard fork, will change the ETH fee structure, significantly reducing gas costs and turning Ether into a more deflationary asset.

ETH 2.0 will switch the network to a proof-of-stake consensus model and reduce selling pressure on the cryptocurrency.

Check Also

UnionBank of the Philippines Picks IBM and Metaco for Crypto Custody

“Think of all the tier-one banks in the market, they’re probably all IBM clients, many …

Leave a Reply

Your email address will not be published. Required fields are marked *