After Bitcoin’s all-time high, Ethereum is also sniffing its old ATH. These are the reasons.
The “Uptober” unfolds its full potential. Yesterday’s trading day was dominated by the crypto currency Bitcoin. After the first futures-based Bitcoin ETF on Tuesday at the New York Stock Exchange had made its debut, the doors to institutional money were wide open. That ensured that BTC catapulted itself to a new all-time high. In the meantime, the digital store of value was quoted at 67,276 US dollars. Initial sales then pushed the price down a little. At press time, digital gold is trading at $ 64,565. In a 24-hour comparison, however, Bitcoin is still in the green with a plus of one percent. However, it is likely that the cryptocurrency will soon head north again, as more Bitcoin Future ETFs are expected for next week. You can find a detailed course analysis here.
The altcoin sector can also benefit from the rocket launch of the cryptocurrency. Without exception, all coins among the ten most valuable cryptocurrencies posted gains. The one that cuts the weakest Binance Coin (BNB) with a price increase of 0.34 percent. The profit margin between Dogecoin (DOGE), Ripple (XRP), Polkadot (DOT) and Cardano (ADA) is between 2.8 and 6.6 percent. Ethereum (ETH) posted an impressive plus of 8 percent. The winner of the day in the top 10 ranking is Solana (SOL). The native currency of the high-speed blockchain project can grow by almost 19 percent overnight and is thus quoted at 185.97 US dollars at the time of going to press.
After Bitcoin in particular basked in the spotlight yesterday, it almost went under the fact that Ethereum, the second most valuable crypto currency in terms of market capitalization, is currently not far from its all-time high. Ethereum stands at $ 4,160 at press time. This means that ETH is only separated by just under 5 percent from the old record. The last time Ethereum ranked above the 4,000 mark was in May, just before the flash crash caused the entire crypto market to collapse.
NFT and DeFi are driving Ethereum forward
The ETH rally can be identified for three reasons. On the one hand, Ethereum naturally benefits from the approval of the Bitcoin ETF, as a strong BTC rate always had positive effects on other cryptocurrencies. On the other hand, it is the renaissance of non-fungible tokens (NFT) that benefits the second most valuable cryptocurrency. The hype at the beginning of the year was followed by a lull before the market could take off again in August. This ensures that more and more institutional investors are dealing with NFT. The auction house Sotheby’s for example, launched its own marketplace for Ethereum-based NFT art just a week ago. Crypto giant Coinbase also built its own NFT platform on the ETH blockchain.
As a third reason, the activities in the DeFi space Ethereum should play into the cards. The ETH blockchain was the first project to introduce smart contracts, thus laying the foundation for a completely new economic sector. Prove that Ethereum is still the top dog despite the burgeoning competition for Cardano, Polkadot, Solana and Co. Counting from DeFi Pulse. The total monetary volume that is locked in Ethereum-based DeFi projects is currently at a new all-time high. At the time of going to press that amounts to Total Value Locked (TVL) to $ 100.8 billion.