Ethereum continues its mad rush, ETH price breaks $ 4,000 for the first time – fr

Ethereum continues its mad rush, ETH price breaks $ 4,000 for the first time – fr

Ether (ETH) eclipsed $ 4,000 for the first time on May 10, breaking through the psychologically significant barrier on several exchanges, including Coinbase. The new milestone comes just a week after crossing $ 3,000.

4 hour ETH / USD candle chart (Coinbase). Source: Tradingview

Last week, ETH overtook Bank of America as the 28th largest asset in the world. But at $ 454.49 billion to date, ETH has now eclipsed the market capitalization of consumer staples giants Wal-Mart and Johnson and Johnson, and is knocking on the door of JPMorgan Chase – America’s largest bank. in terms of assets under management.

Part of the rise may be related to growing institutional interest in the asset. This week, a report from Coinshares said that institutions had bought more than $ 30 million in ETH by the end of April. It is believed that fund managers now own $ 13.9 billion worth of ETH or ETH vehicles.

Likewise, there has been significant progress in adoption. Last week, the European Investment Bank announced that it would issue a $ 120 million bond on the world’s largest Layer 1 in conjunction with major banking entities such as Goldman Sachs. Additionally, the growth of decentralized finance – one of Ethereum’s key communities and use cases – continues at a remarkable rate.

However, the most bullish catalysts on the horizon are a pair of major network infrastructure upgrades: EIP-1559 and ETH 2.0. The EIP-1559, which is now expected to be included in the “London” hard fork, will include an overhaul of the ETH fee structure and is expected to significantly reduce gas costs while potentially making ETH a more deflationary asset.

ETH 2.0, in turn, will move the network to a proof-of-stake consensus model, which should reduce selling pressure and encourage asset ownership.

The remarkable run has even sparked new speculation that there could be “flippening” on the horizon – a long overdue event in the Ethereum community where ETH outperforms BTC in market capitalization.


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