ETH Hits All-Time High at $3981, Further Closing the Gap with BTC
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The attainment of the new ATH by ETH has duly reawakened the prospects of the digital currency to take BTC over in terms of market capitalization in the future.
ETH (ETH), the world’s second-largest cryptocurrency by market capitalization is on a tear, beating its own pace as it sets a new All-time High (ATH) price record. From its lowest trading price of $3,529.59 in the past 24 hours, ETH has surged to a high point of $3,981.26, in a rally that has realigned the bulls towards the ambition of crossing the $4,000 psychological mark.
ETH has broken away from the long-term correlation with BTC (BTC), charting its own course, as the entire market sees increased interest from both retail and institutional investors. ETH crossed the $3,000 price level barely a week ago, and its outperformance has reaffirmed its zeal to close up the market capitalization gap with BTC. In the past 24 hours, ETH has grown by 10.55%, and by 37.29% in the past week. At the time of writing, Ether is exchanging hands at $3,929.96, per data culled from CoinMarketCap.
Per the current performance and valuation of ETH with a market cap of $457.19 billion, the cryptocurrency is now more valuable than several Wall Street firms. Examples of companies in this regard include Square Inc (NYSE: SQ), Pfizer Inc (NYSE: PFE), Goldman Sachs Group Inc (NYSE: GS), and e-commerce giant Walmart Inc (NYSE: WMT) amongst others.
Network Convenience No More a Scare
ETH’s age-long problem of high gas fees is still inherent, however, investors choose to look towards the future potentials of the decentralized finance (DeFi) focused network. The ETH Foundation has been working on migrating the entire protocol from the Proof-of-Work (PoW) network to a more scalable Proof-of-Stake (PoS). This migration is significant as it is billed to help address the congestion on the network, and eventually, the high gas fees.
While a lot of work has been put into the PoS model pursuit also known as ETH 2.0, marked by the launch of the Beacon Chain last year, the more imminent EIP 1559 upgrade is perhaps a good catalyst for an ongoing bull run. The latter upgrade will restructure the remuneration system for transaction confirmation, while also turning the coin into a deflationary asset.
The prospect of a brighter future for the ETH network, marked by a committed team of developers, and a burgeoning embrace by Smart Contracts has re-awakened investors’ interest in the network. This has prompted ETH proponents to double up on their accumulation of Ether, thus pushing the price towards new price levels.
ETH All-Time High: Hopes to Flippen BTC on the Horizon?
The attainment of the ATH by ETH has duly reawakened the prospects of the digital currency flippening BTC in terms of market capitalization in the near future. BTC has doubled its price this year while ETH has quadrupled in price. With the BTC market cap currently pegged at $1.08 trillion dollars, a continuous upsurge in ETH will see the coin worth as much as half the BTC market cap.
Proponents believe the more the gap closes, the higher the possibility of Ether becoming the world’s most valuable digital currency. Then, many will come to understand that crypto means business.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
