Ether Hits the $3,550 Mark Since Mid-May as DeFi and NFT Spark Interest in Altcoins
Ether, which is Ethereum’s token, reached a record-breaking price on Wednesday. This is the highest it’s reached since mid-May.
The gain is being attributed to investors’ increasing trend to opt for alternative cryptocurrencies other than bitcoin. This habit has gained traction in the past couple of weeks.
Ether token gained by a whopping 7% at one instance, reaching a high of $3,560. At press writing, the coin is trading at $3,750.10.
Even though bitcoin still holds the crown for the most actively traded digital currency, the majority of the smaller players- like ether, Polkadot’s dot and Cardano’s ADA- are becoming popular at a rather fast rate.
One thing working in favor of these smaller-scale crypto networks is the fact that they provide a vast range of applications- way more than Bitcoin does. For instance, they offer NFTs, decentralized finance (DeFi) protocols and others.
NFTs, which is the abbreviated form of non-fungible tokens, refer to digital tokens that are linked to real-world assets like videos, artwork pieces just to mention a few.
Dune, a data analytics company, gathered data showing that OpenSea- the biggest NFT platform- registered a monthly activity volume of more than $3 million in August.
This is the highest the firm has ever recorded.
DeFi and NFTs are among the blockchain technologies that have caused ethereum to gain such massive popularity.
Given that the majority of NFTs are minted on this blockchain network, this has led to an increased demand for ether; and subsequently, a boost in its price.
Petr Kozyakov, the co-founder and CEO of Mercuryo (a payment network that operates globally), suspects that the price of ether could soon surpass the $4,000 mark.
The rising popularity of ether has sparked an interest in other altcoins. Dot, for instance, gained by 8.7% for the day, to end at $30.21. Ripple’s XRP increased by a fairly similar margin of about 7.43% to trade at $1.20.
It appears that the cryptocurrency industry is gaining traction rapidly. And as Bitcoin’s dominance starts to wade, other coins will begin to gradually climb ranks.