Ethereum has been reported to achieve a new milestone above $4,000 just a week after it surged up to $3,000. The second-largest cryptocurrency took everyone by surprise last week after becoming the 28th largest asset in the world, overtaking the Bank of America.
Ethereum has now outshone some of the top consumer staples such as Johnson and Johnson and Walmart, with a market capitalization of $454.49 billion today. The digital currency is also speculated to soon surpass JP Morgan, the largest Bank in America.
Considering the price surge in Ethereum and its growing recognition, this might be a good time for interested parties to start investing in cryptocurrency. Potential investors can use reliable exchanges such as SwissBorg or Kraken to step in to the crypto world.
Why the Impressive Rise in Ethereum?
The increasing interest and investment of well-known institutions in Ethereum is one of the reasons for the price surge seen today.
- At the end of April, popular institutions reportedly purchased approximately $30 million or more in Ethereum.
- An investment of $13.9 billion in Ethereum or Ethereum vehicles from Money managers has also been thought of.
Apart from the investment of organizations and companies in the digital asset, there has also been an increase in its adoption.
- The European Investment Bank announced the issuing of a $120 million bond last week, on the largest layer-1 in the world, in association with major bank entities.
- The growth of decentralized finance also continues, which is ETH’s key communities and use cases.
The factors mentioned above are some of many that have significantly highlighted the potential and importance of the digital asset, resulting in an impressive increase in its price.
Impact of ETH Updates on its Price
Ethereum has been in the headlines, especially after it reached a new all-time high above $3,000. It is once again in the spotlight after going higher than $4,000 for the first time. Some of the contributing factors have been mentioned above, which include the investment of top companies giving a boost to Ethereum’s prominence.
However, ETH has also risen to the current status, thanks to major infrastructure upgrades to the network:
- ETH 2.0. EIP-1559
The ETH 2.0 upgrade will shift the network to a proof-of-stake consensus model, which is anticipated to reduce the pressure of selling and encourage the investors to hold the digital currency.
Keeping in view the impressive growth of Ethereum, it is speculated that it will soon overtake Bitcoin in terms of market capitalization, which is a long-awaited event in the ETH community.
Effect of ETH’s Price on Investors and Traders
Ethereum has exceeded all expectations after an incredible surge within a week. The significance of the digital asset is expected to further highlight as more companies and organizations start to invest in it after the launch of network upgrades.
Taking these factors into consideration, this could be a suitable time for the interested parties to start investing in Ethereum with the help of secure exchanges such as SwissBorg or Kraken and ultimately consider crypto trading by using ByBit.
Interested parties who are busy can also indulge in crypto trading by using PrimeXBT Covesting, which allows the users to copy-trade.