After hitting its new ATH of $4350, Ethereum price was up approximately 7.9% on Wednesday, May 12, 2021, and trading around $4,291 at the time of reporting according to TradingView.
ETH Price Push Up Crypto Market Cap
The second-largest cryptocurrency shattered its previous all-time high of $4,000 on May 10, en route to reaching $4,345, a fresh all-time high, while its market cap soared past $500 billion for the first time, rising to nearly $505 billion in the early stages of May 12, before retracing and settling at the current $495 billion valuations.
In recent weeks, Ethereum has had a lot of success against Bitcoin. Profit-seeking traders have been looking for profits elsewhere due to the initial cryptocurrency’s prolonged consolidation, which has been in effect since February. On the weekly map, the ETH/BTC pair recently broke out of a months-long cup and handle pattern, enabling the second-largest cryptocurrency to catch up to Bitcoin.
This year, Ethereum has gained over 480% year to date, and despite a minor decline, its value has increased by 65 percent in the last 30 days and 5.3 percent in the last 24 hours. If purchased at the time of launch, Ethereum has an approximate return on investment of 150111.43%.
As a result of Ethereum’s market surge, the overall market capitalization of crypto coins has now reached $2.5 trillion, as many digital coins continue to perform well this year. Over the last 48 hours, the overall market capitalization of crypto assets has increased by $228.13 billion, reaching an all-time high of $2.53 trillion.
Experts predict that the price of Ethereum will rise to nearly $20,000 in the next four years. By the end of 2025, this will translate into a 400 percent increase. Ethereum, on the other hand, is full of surprises, and its value will rise sooner than anticipated, depending on the developers’ ability to produce Eth 2.0.
ETH/USD rally continues. Source: TradingView
Related article | The Bearish Signal Ethereum Bulls Need To Fear
Ethereum Rally Can Be Linked To Dapps
Reuters suggest that the rally could be fundamentals-driven, with institutional interest ramping up and the broader proliferation of decentralised finance (DeFi) apps within the Ethereum ecosystem.
Ethereum is the most prominent blockchain in the DeFi finance space, with its price frequently stifling DeFi’s growth. Since their inception in the crypto space, Chainlink, Uniswap, Aave, Maker, BAT, DAI, and Compound TVL have amassed a total volume of just over $90 billion, accounting for 9.57% of the total crypto market, and have racked up gains thanks to performances from Chainlink, Uniswap, Aave, Maker, BAT, DAI, and Compound TVL.
Institutional investors looking to join the decentralized financial world also flocked to the Ethereum ecosystem in large numbers. According to a panel of 35 experts, Ethereum will overtake Bitcoin as the most commonly used digital asset by the end of 2022.
The panel included Coinmama chief executive Sagi Bakshi, ConsenSys head economist Lex Sokolin and was surveyed by personal finance comparison site Finder. According to their survey, Ethereum is poised to significantly benefit from the huge demand in decentralized finance (DeFi) and also the non-fungible tokens (NFTs). As a result, Eth will have more use cases than the leading digital asset Bitcoin.
“We are likely to see major upgrades to the ethereum network this year, and those can be expected to push the price higher,” said panel member BitBull Capital chief operating officer Sarah Bergstrand, who thinks ethereum will rocket to a staggering $100,000 by 2025.
Related article | Ethereum Overcame Odds With New High, Here’s Why ETH Could Test $4.5K
Featured image from Pixabay, Charts from TradingView.com