Ethereum (Ether), the world’s second-largest cryptocurrency, has marked consecutive new records from April 27 to May 6- the recent high was $3,600 (on Bexplus). At the beginning of 2021, Ether broke $2,000 in February. And now just a little more than 2 months, Ether has exceeded the coveted $3,000. Its market cap expanded as well to over $350 billion. As of writing, Ethereum has surpassed business giants like PayPal, Procter & Gamble, Netflix, and more.
Ether is getting popular among institutional investors
According to Reuters, in the earlier week, the news that the European Investment Bank is to launch a “digital bond” sale (€100 million) using the Ethereum network is one of the main reasons for the ETH’s recent new record. Besides, people’s increasing interest in Defi has also catalyzed its price. It is worth noting that Ether is more and more popular among retailers and institutional investors, especially over the past few weeks. Grayscale, the world’s largest digital asset and cryptocurrency investment management company, owns more than 3.2 million ETH, accounting for about 3% of the total supply. This greatly reduces the total supply of Ethereum in circulation and causes its price to rise.
In addition, Visa announced that it will allow its partners to settle transactions on Ethereum, and the current insufficient supply of ETH on the exchange has also played a role in promoting its price. As the amount of ETH supplied in various exchanges hit a 28-month low, this insufficient not only pushed up prices but could also be a potential sign of institutions’ holding ETH.
Ethereum is an advantageous open source technology development project that has the ability to shape the future of finance. Although Bitcoin is still the most popular crypto investment option, Ethereum is also becoming more and more welcomed.
Will ETH increase by 10 times？
Besides the enthusiasm from the institutional investors, the soon-to-be-implemented Ethereum Improvement Proposal, EIP1559, is also one of the prominent factors for the bull run of Ether. Since the EIP1559 implementation was first confirmed on March 5th, ETH price rose by about 105%. According to this development trend, Ethereum’s multiple gains are just around the corner. However, Ether is also facing some challenges before it is able to skyrocket to $30K.
- ETH 2.0
It is an upgrade to Ethereum’s network that allows you to stake Ethereum for interest. The network is still in beta, but there has already been over $1 billion of ETH locked in staking, which indicates the market supply of this token is decreasing.
- The price of Bitcoin
It will affect the cryptocurrency market as a whole. When Bitcoin is bearish, other altcoins may follow its steps. Though ETH is leading the altcoin season insteading of trading sideways like Bitcoins, there is still a long way for Ether to contend with Bitcoin.
- High transaction volume
It will increase the amount of transaction fees on Ether’s blockchain. These fees are paid to Ethereum miners, who often sell their tokens on the market, increasing the supply of ETH. However, the higher the transaction fees, the more demand for ETH tokens, as you need to own Ethereum to pay transaction fees.
What should you do to this ETH bull run?
If you don’t hold an ETH but still want to catch up with this bull run, it is suggested to trade ETH at crypto exchanges. Bexplus is a recommended leverage trading platform that doesn’t require any KYC- registration is being done through Email verification. And the transaction fees are lower than most of the exchanges like Coinbase, Kraken, etc.
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