The price of Ether went up drastically over the weekend, breaking $3,000 and on Tuesday, it crossed $3,300.
Ether is the native cryptocurrency of Ethereum blockchain, used from decentralized lending applications to launching your own coin through an initial coin offering. It has many different utilities for the internet. Investors are seemingly responding to an inherent utility that is seen with the token, pushing up the price.
The price of Ether has gone for a tremendous bull run since March of last year; it has actually beat now Bitcoin year to year. It is up from $80 to more than $3,300 over that same time which is a good return on investments. Currently, on the Coindesk index, its price is valued somewhere around $3,391.
There is many other bullish catalysts coming down the pipeline for Ether this year in July. There is a protocol change that is going to change how transactions are made on Ethereum. This is supposed to be a boon for the price. In the fall there is also protocol change moving from proof of work to proof of stake. This underlies that tech infrastructure itself is going to change and that is a long-held promise by the Ethereum community and developer community.
It is interesting to see these markets forecasting these two protocol changes and that is seen being reflected in the price. Ether is also seen being picked up by some corporate treasuries. It is so in the same sense that Bitcoin really is being picked up by Teslas and micro strategies of the world.
uIt is remarkable to see the price of Ether continue to pick up momentum. The institutional aspect of Ether is sort of emerging. If this becomes a major narrative around this crypto asset that could be quite interesting and empowering for the token. It remains to be seen how the institutions end up using this network since it is a bit different from Bitcoin. Ethereum provides you additional functionality in terms of smart contracts and other yield-generating platforms. Therefore, if Ethereum continues to rise, it is a good sign for the market at large as people get to figure things beyond Bitcoin.
Where Bitcoin has been mainstream for quite a while, Ether’s breaking out to the stage moment is followed by it going more mainstream.
Ethereum in particular gave birth to the decentralized finance movement. It was seen last week that DeFi has a hundred billion dollars locked according to CoinGecko, which is astronomical. In the market capitalization of Ether itself, it’s exceeding the bank of America, its exceeding entertainment giant Walt Disney, food conglomerate Nestle, etc.
The fact that we can have this commissionless system with no barriers to entry that everyone can participate in benefit from is fantastic.