Ethereum Soars To Record High. Here’s What Caused Its Rise - Kalkine Media

April 28, 2021 11:42 PM AEST | By Anuj
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Summary

  • Ethereum, the world’s second biggest crypto asset, set a record peak of US$ 2,718.6 per token during Asian markets’ trading hours on Wednesday, April 28.
  • The surge came in the wake of reports on European Investment Bank’s (EIB) plans.
  • A week ago, cryptos tumbled to their support levels.

Ethereum, the world’s second biggest crypto asset, set a record peak of US$ 2,718.6 per token during Asian markets’ trading hours on Wednesday, April 28. This surge came as reports said that European Investment Bank (EIB) intends to introduce a "digital bond" sale worth 100 million euros on the Ethereum network powered by blockchain technology.

A week ago, cryptos tumbled to their support levels as US President Joe Biden announced plans to hike capital gains taxes that could hurt investment in the cryptocurrency market.

Cryptocurrencies, however, started rebounding over the weekend following reports on JP Morgan’s plans to allow its customers to invest in bitcoin funds.

Source: Pixabay

 

Meanwhile, Bitcoin was trading in red at US$ 54,181 apiece on Wednesday morning (5AM EST). The US$ 1-trillion market cap electronic coin has gained 87 per cent this year. In contrast, the Ether token has zoomed 254 per cent in 2021, approximately three times against Bitcoin’s year-to-date (YTD) growth.

Since its inception in 2015, Ether has swelled by over two thousand times. It started its trading journey at US$ 1.233603 apiece in August 2015, and is now valued at US$ 2,600 per token (5:10AM EST, April 28). 

 

Ethereum Blockchain’s Rise In 2021

 

In March, the network creators decided to reduce its total supply by burning excessive Ether tokens and maintain a sustainable demand-supply flow. Ethereum is currently offering a total supply of 115.65 million units.

It has breached a US$ 300-million mark in market cap, and its one-day trade volume is US$ 38.3 million. It rose over 1,510 per cent in the past one year. The latest launch of three Ether funds on the Toronto Stock Exchange (TSX) has also pushed its rally. 

Most decentralized crypto wallet applications run on Ethereum’s blockchain platform. Digital asset analysts estimate a short-term price target of US$ 3,000 for each Ether, as more institutional clients are choosing its network for their secure and high-end transactions. The EIB’s digital bond offering could further bolster the demand for Ethereum.

The US$ 2.9 million transaction for Twitter CEO Jack Dorsey’s Non-Fungible Token (NFT) was made in Ether by the Malaysian blockchain company owner the last month, which reflects Ethereum’s rise in popularity worldwide. 


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