Bitcoin competitor Ethereum goes beyond $4000 for first time
Ethereum acquired almost three months to grow from $1,000 as of January 4, 2021, to the $4,000-mark on May 10, 2021. This happens only 31 days to succeed and gain more heights.
The distinctiveness of Bitcoin and Ethereum
With its immense progress this year, Ethereum’s power with its part of the total cryptocurrency market value now stands at over 18%. And if it is compared to Bitcoin’s then its 42%.
What’s the market cap now?
It has crossed the US$4,000 mark for the first time currently. It is flowing to new all-time highs, according to CoinGecko data. Ether is transacting at US$4,132.40 as of publishing time. The second leading cryptocurrency by market value, Ether started 2021 at about US$738. Now it is up by 400%, linked to nearby 100% for Bitcoin.
ETH’s worth breaking ATHs on an approximately daily basis is perhaps also caused by investors factoring in some of the lofty promises of ETH2 as the network moves towards the direction of proof of stake, not to mention the continued strong growth of DeFi,” Zhou said.
Comparison with other cryptocurrencies and the market cap with other companies-
Ether’s complete market price of US$472.8 billion has now beaten Mastercard, Walmart and PayPal. The market cap of Ethereum has been graded higher than that of companies such as Mastercard ($370 billion), PayPal ($288 billion), Bank of America ($366 billion), etc., as per CompaniesMarketCap.
Why is there an increase in price?
As stated by Toya Zhang that “Ethereum is not an altcoin. It is ‘the Ethereum,’ the pioneer of programmable blockchains and the enabler of all popular projects including DeFi and NFTs”. The price of Bitcoin is appreciated as the indication of cryptocurrency being favored as an investable asset. Ethereum’s price spike should be the indication of blockchain-based applications being accepted and adopted.
“As the cryptocurrency market grows as a whole, it is not easy to predict ETH price as itself,” Zhang added. Though, ETH has the prospective to talk over 25-30% of the entire crypto market capitalization as the market matures by18.46% at the moment.
CBW - External Analyst