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Ether coin achieved a new high of US$ 3,545.2 apiece for the first time on Thursday, May 6. The second largest blockchain network has been recording record highs since the last week of April 2021.
The Ethereum network registered fund inflows of US$ 30 million in the previous week, leading to its net assets under management (AUM) to hit an all-time high of US$ 13.9 billion. This came after the European Investment Bank (EIB) initiated digital bond offering on its platform.
Ether’s current rally demonstrates the power of blockchain networks, and crypto experts perceive it as an evidence of a "super healthy" crypto market. Plus, the latest surge in the decentralized finance (DeFi) to US$ 100 billion points to the rising demand for Ethereum’s ‘Solidity’ software.
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Its market cap has breached the US$ 400 billion-milestone, surpassing giant US establishments like Bank of America, Morgan Stanley, Citigroup Inc, etc in terms of market cap. The virtual coin has swelled more than 373 per cent year-to-date (YTD), as compared to its rival Bitcoin’s YTD growth of 96 per cent.
Ethereum’s fintech clients can access its blockchain platform from anywhere to build their decentralized applications (DApps) by writing smart contracts on the blockchain. Consequently, the average transaction volume on Ethereum has risen by 22 per cent this year.
Can Ether Hit $5,000-Mark Soon?
Blockchain developers have been actively enhancing the competency of the platform to allow more secure and faster transactions. The upcoming launch of Ethereum 2.0 could help it cross the US$ 5,000 apiece target by the third quarter of this calendar year.
Version 2.0 would resolve issues related to high gas fees and offer an upgraded and congestion-free network to meet financial institutions’ requirements.
Other key drivers of Ethereum’s success are crypto miners, rising Non-Fungible Tokens (NFTs) traction among digital fine artwork enthusiasts, and decentralization of the economy.
Ether has become the first mover of the overall crypto industry as its price movement has begun setting the bar for thousands of other virtual tokens. It has overtaken Bitcoin’s position after breaching its daily trading volume for the first time ever on May 4.
Digital asset managers have raised their 2021 expectation to US$ 10,000 per token. Looking into its sharp growth flip against Bitcoin, Ether could overtake the largest electronic coin in terms of market cap soon.
Meanwhile, digital asset firms listed Ether exchange-traded funds (ETFs) on the TSX last month. On top of that, conventional Wall Street legends have started mentioning Ethereum in their comments. This shows that investors all ages are getting interested in the ongoing crypto boom.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
