TL; DR Breakdown
- ETH has broken its previous ATH.
- DeFi and network upgrades fuel its rise.
The general crypto market has had a moderate past week, but Ethereum seems to be having a good time as it enjoys a “touch-and-go” moment with the previous ATH. Merely 24 hours ago, the second largest crypto (by market cap) surpassed its ATH, establishing a new high of $1,432. According to information on CoinMarketCap, ETH has had a 22% price spike in the last 7 days.
ETH has impressed many people, leading some investors to give highly confident predictions about its future. A recent statement by a strategist working with Fundstrat Global Advisors claimed that Ethereum is headed for a price over $10k. The strategist, David Grider, put the price at around $10,500. However, he refrained from giving an actual time-frame for the prediction.
Ethereum could spike by 7x
The mentioned $10,500 in price for ETH represents an over seven-fold spike, something even Bitcoin has found hard to achieve. In fact, the crypto performed much better compared to Bitcoin in 2020. While Bitcoin scored a four-times price upswing, ETH scored a five-times one. The crypto is now trading at around $1,292.
With the most recent price action breaking the ATH record that has been in place since the end of the last bull cycle of late 2017, it’s easy to see why a lot of investors are bullish on Ethereum. Many have accepted that Ethereum has matured into a credible asset class worthy of mainstream attention. Institutional investors like Grayscale are already accumulating ETH along with BTC.
DeFi and network upgrade support ETH popularity
According to Grider, blockchain technology will revolutionize cloud computing. He also said that Ethereum represents the best option for crypto investments when gauging its risks and rewards. The Ethereum blockchain has had a great boost from the rise of Decentralized Finance (DeFi), with numerous such applications already running on its network.
The recent efforts to upgrade the network has also played a significant role in supporting the popularity of ETH. With its faster processing speed, the network has attracted more DeFi protocols on its platform. The network can now process as many transactions as Visa and Mastercard.