There’s no stopping Ethereum as its price continues to surge amid the crypto craze. The second most valuable cryptocurrency, with a market cap of $477 billion after Bitcoin, topped the $4,000-mark on Monday to scale all the way to $4,128 at the time of filing this report, as per data from CoinMarketCap. Importantly, while Bitcoin’s biggest alternative crypto Ethereum took nearly three months to grow from $1,000 as of January 4, 2021, to the $2,000 mark on April 2, 2021, and only 31 days to hit the $3,000-level on May 3, it added another $1,000 in the following seven-day period. Its market cap has also grown over 5X from $85 billion as of January 1, 2021.
“Ethereum is undergoing the equivalent of three halving events over the next 12 months that will reduce its issuance by nearly 90 per cent. So, the supply of Ethereum in the market will be reduced while the coin will undergo a deflationary pressure with the Ethereum Improvement Proposal (EIP) 1559. The buy pressure more precisely will drop by 90 per cent and as a result the 12 months next are supposed to be great for Ethereum. Moreover, it has got a lot of use cases as compared to Bitcoin which are finally being discovered now,” Atul Chatur, Co-founder, Antilles Cryptocurrency Exchange (ACE-X) told Financial Express Online.
Also read: Ethereum now more valuable than Visa, JPMorgan Chase; Bitcoin-rival among top five financial services
EIP-1559 is referred to the changes to the platform including core protocol specifications, client APIs, and contract standards proposed by any community member and then discussed internally, according to cryptodaily. “One of the most controversial aspects of the EIP is that it burns most of the transaction fees paid out to miners and fixes ‘gas’ fees volatility.”
“The utility of Etherium as a global financial settlement layer has gone up significantly. There are now over $77 billion deployed in Etherium-based projects and the number is growing rapidly. This uptick started in June 2020 or what is now called the summer of DeFi and continues to grow. On top of this NFTs and other product innovation on top of Etherium are now starting to see large-scale adoption,” Edul Patel, CEO and Co-founder at automated crypto trading platform Mudrex had told Financial Express Online. The 24-hour trading volume for Ethereum was worth $52.6 billion while the circulating supply for the coun was 115,815,871 while filing this report, as per CoinMarketCap. The market cap of Ethereum has been ranked higher than that of companies such as Mastercard ($370 billion), Bank of America ($366 billion), PayPal ($288 billion), etc., as per CompaniesMarketCap.