A recent surge in the price of ether, the second-largest crypto coin, has towed the bui, already topped a $1 trillion valuation a few weeks earlier and doubled its market price since January 2021. Its price has multiplied by 7 folds within a year. It was trading around the $9,000 mark by ending March 2020, but slightly above $60,000 at the same time this year.
However, Bitcoin has struggled to consolidate above the $60,000 mark for some weeks and is currently trading at around $58,000. Hence, experts strongly believe that the new record market cap of cryptocurrencies owes more to Ether than any other crypto.
The recent Ether rally posts its price on an all-time high and marks an 1800% year-to-date increment. The currency is currently trading at around $2,151.25, compared to around $130 this time last year.
Altogether, the collective market value of all cryptocurrencies has doubled over the past two months. The increasing mainstream adoption of cryptocurrencies within the last few months across the globe has had a monumental effect on the market’s trade volumes.
The rally in Ethereum is resulting from the rapidly increasing institutional adoption of DeFi (decentralized finance applications) on the Ethereum platform. Besides powering Ether, its cryptocurrency, the Ethereum platform also provides software and tools for building smart contracts – are applications set up to automatically execute book-keeping activities like DeFi apps.
DeFi is growing wildly popular and the platform is supporting an ever-increasing number of blockchain-based financial services that allow customers to bypass the rigors of traditional pipelines like banks and brokerages using cryptography and cryptocurrencies.
Another offshoot of the platform, the non-fungible tokens, or NFTs, is also becoming a major attraction in the crypto community. NFTs are a new type of digital asset which, according to billionaire Ethereum investor Mark Cuban, makes ether the “closest we have to a true currency.”
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