Ethereum Sets New Record
On Monday, ethereum reached a new high for the third day in a row.
This is in line with the increasing optimism surrounding decentralized finance (DeFi) although a few analysts believe that the cryptocurrency was overestimated at the present levels.
2021 has seen the value of ethereum skyrocket, in part due to the rising popularity of DeFi. DeFi is a collective term for an array of financial applications, which enable crypto-centric lending other than traditional banking.
Most of these applications are integrated in ethereum blockchain.
Ethereum, which is ranked as the second-biggest coin based on market capitalization, reached new heights with a price of $4,200. The last time it increased this much, it traded at $4,133.40.
Another factor that has worked in this crypto’s favor is the forthcoming technical modifications to its software. There’s also the fact that a new lot of institutional investors in the cryptocurrency sector are growing fond of it.
Chris Weston, who works as the head of research at brokerage Pepperstone, explained that cryptocurrencies have been receiving more involvement from institutional investors than those who haven’t kept up with market trends.
Still, some analysts believe that ethereum’s rising valuation is not supported by the data of how widespread it’s become.
U.S.-based J.P. Morgan, remarked that the sum of the digital addresses within its network ought to align more with a price of about $1,000.
The leading cryptocurrency, Bitcoin, increased to a 3-week high of more than $60,600. But previously it had plummeted by 2.9% to end at $56,632.
Glassnode, which provides data related to blockchains, released a report on Monday claiming that there are signs that a part of bitcoin capital is moving towards dogecoin and ethereum.
Surprisingly, Dogecoin, which has been registering an upward trend, recorded a steep decline on Monday. It fell 10% to 48.2 cents.
This decrease can be attributed to Elon Musk’s comment about the cryptocurrency being a hustle.