Less than a week after breaking $3,000, ETH, the second largest cryptocurrency, has soared more than $4,100, up more than 33%, to another record high. Ether is up even more than 400% since the beginning of the year.
There is also good news, based on the current market capitalization in circulation, Ether will rise about 129.6% more to surpass Bitcoin, are you excited and looking forward to it?
At the beginning of May, ETH officially overtook Bank of America to become the 28th largest asset in the world. This record was soon rewritten, as ETH has now surpassed the market capitalization of essential consumer goods giants Walmart and Johnson & Johnson, entering the top 20 largest assets by market capitalization and closing in on JPMorgan Chase and Samsung. JPMorgan Chase is the largest bank in the U.S. in terms of assets under management.
According to CoinMarketCap, Ether’s market dominance reached a 3-year high of about 19%.
Analyzing the reasons for the rapid rise, a very important aspect is the huge increase in institutional interest in ETH , which they got to know through BTC and started to allocate.
This week, a Coinshares report said that institutions bought more than $30 million of ETH by the end of April, and money managers now own $13.9 billion of ETH and ETH financial instruments.
Meanwhile, ETH has made significant strides in the traditional financial markets. Last week, the European Investment Bank announced that it will partner with major banking entities such as Goldman Sachs to issue the world's largest layer-1 bond, with an issue size of $120 million. In addition, the growth of decentralized finance - one of the major communities and use cases for Ether - continues to grow.
On May 7, asset manager VanEck formally filed a proposal for an Ether exchange-traded fund with the U.S. Securities and Exchange Commission. This is a convenient and cheap and regulated variety for investors who want to buy cryptocurrencies on the stock market.
This year, four Ether ETFs have been launched in Canada. the first three were launched by Purpose in mid-April, with Evolve and CI Global Asset Management, and their trading volume reached $138 million in their first week. And 3iQ has launched its fourth Canadian ethereum ETF at the end of April.
Another reason for optimism is Ethernet’s upcoming major network infrastructure upgrades: EIP-1559 and ETH 2.0. EIP-1559, now scheduled to be included in the “London” hard fork, will include an overhaul of the ETH fee structure and is expected to significantly reduce GAS costs, while also potentially making ETH deflationary. potentially making ETH a deflationary asset.
In turn, ETH 2.0 will convert the network to a proof-of-stake consensus mechanism that is expected to reduce selling pressure and encourage long-term holding of ETH assets.
This extraordinary series of upgrades has reignited speculation and become a much-anticipated event.
Despite rising more than 400% since the beginning of the year, some experts are predicting further gains for ETH and that the market cap will even surpass that of Bitcoin. Billionaire Dallas Mavericks owner Mark Cuban, for example, believes that Ether will continue to move forward and outperform Bitcoin.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/ether-broke-through-4000-to-a-new-high-the-reason-is-actually-institutional-concerted-action/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.