TL;DR Breakdown
- Ethereum price hits $4,000 for the first time since May.
- Analysts says new bul run is because of NFT, DeFi,Bitcoin futures ETF.
After many months, Ethereum price has hit $4,000 again as the entire crypto market gains momentum.
The world’s second-largest cryptocurrency by market capitalization (ETH) has struggled to hit the coveted level for weeks until today, breaking the level after a 4 percent in the past week.
Analysts have attributed the recent bull cycle in the crypto market to a second wind for non-fungible tokens (NFTs), DeFi protocols, and the United States’ first Bitcoin futures ETF. The number one cryptocurrency, Bitcoin, also rose by 3.7 percent in the past 24 hours to hit a new all-time high of over $65,000 after the first Bitcoin futures exchange-traded fund, ProShares, began trading earlier this week.
The development has rubbed off positively on the crypto market as the total market cap of all cryptocurrencies has hit a new all-time high of over $2.6 trillion.
Now, Ethereum price has hit its highest since May, around the same time that Bitcoin hit its previous all-time high of $64,804.
Ethereum price: Road to $4,000
Before getting to this level, Ethereum’s price doubled in less than one month as the price slumped and quickly surged again. Around May, the number one altcoin slumped and traded around $2,110.
The coin then spent several months bouncing between $2,000 and $3,000 before finally breaking through $3,000 in early August. Technically, the growing popularity of both NFTs and decentralized finance (DeFi) have helped Ethereum to reassert market dominance.
Through smart contracts, a wealth of decentralized finance apps have been built atop Ethereum that bypass the need for centralized institutions such as banks. The total value locked (TVL) in DeFi apps has increased rapidly over the course of 2021, and a recent surge during October has seen TVL near its all-time high of $99 billion, according to DeFi Pulse.
All these are factors that helped ETH culminate in its recent price level. At press time, it trades at $4,125 with a market cap value of $486,547.
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Muhaimin Olowoporoku
Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what’s happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.
