Ethereum over $ 3,000: These are the price drivers

The No. 2 in the crypto market has crowned itself with a new record, while Bitcoin is again heading for the 60,000 mark.

The crypto market is firmly in bull hands at the beginning of the week. Three of the ten largest cryptocurrencies are at record levels. First and foremost Ethereum: The number 2 has broken the 3,000 mark for the first time with a weekly plus of 33 percent in today’s trading. At the time of going to press, the price of Ether climbed to $ 3,096.

Gold rush mood in the crypto market

The third largest cryptocurrency is also starting the month with a new record in its luggage. The BNB rate hit a new high of $ 638 on Saturday. In a 30-day comparison, Binance Coin has gained 85 percentage points and is currently only 1.9 percent below the new all-time high at 626 US dollars.

But there are three of the good things. In addition to Ethereum and Binance Coin, Uniswap (UNI) also started the week with a new record high. Overnight, the UNI rate rose 12 percent to a new all-time high of $ 44.

Even the largest cryptocurrency is gaining ground again and is gradually heading towards the 60,000 mark. If the Bitcoin price ricocheted off the resistance on Saturday, it slowly moves back towards the key mark with a 24-hour plus of 1.8 percent. At press time, BTC is trading at $ 57,984.

The gold rush is again spreading in the crypto market. As the records tumble, around $ 400 billion poured into total market capitalization in just one week, rising to a record $ 2.3 trillion.

Ethereum indicates potential

Around 69 billion US dollars will go to Ethereum’s account during the period alone. Since the beginning of the year, Ether market capitalization has increased 326 percent. This upward trend is made up of various factors, with the expectations of the upcoming Ethereum Improvement Proposal 1559 currently acting as a major price driver. Significant changes are being made with EIP-1559. The upgrade not only throttles transaction fees, but also the amount of ether in circulation. Transactions are becoming more affordable again with a simultaneous shortage of supply. This interaction should serve as a sustained price catalyst in the coming months. The upgrade is to be implemented in mid-July with the “London Upgrade”.

Meanwhile, the demand for ethers on the DeFi market is also continuously increasing. 10.7 million ethers are loud Defipulse currently integrated into DeFi applications, 42 percent more than at the beginning of the year. The total value at the current exchange rate is thus 33 billion US dollars.

The European Investment Bank has also contributed to the price explosion in recent days. How Bloomberg reported last week, the EIB will settle digital bonds worth 100 million euros (121 million US dollars) on the Ethereum blockchain. The two-year digital bond is to be issued under the leadership of Goldman Sachs, Banco Santander and Societe Generale, as was also confirmed to BTC-ECHO.

The increasing demand for ether meets with a supply that is becoming scarcer. Since the middle of last year, the stocks have been falling rapidly and have Glass node according to the lowest level in two years with 13.8 million units.

The meeting of these factors, paired increasing transaction volumes, have not only triggered the current high altitude, but should also continue to price their way into the Ether performance in the coming months.