Ethereum has broken quite a few records attaining its new all-time high price starting at sub $2,200 just seven days ago. Now it’s breaking its own records and developing new narratives in the crypto community.
Even though gas fees at the time of writing are quite low by 2020 and 2021 standards, it doesn’t seem to be impeding Ethereum’s price or DeFi assets under management at all. In fact, quite the opposite is happening. Both ETH performance and DeFi AUM are increasing, even if the gas situation is suggesting low activity.
Simply looking at the price of Ethereum would suggest so, while other leading cryptocurrencies remain stagnant, ETH is slowly but surely climbing up in fiat valuation. Ethereum is starting to compete with Bitcoin once again, as a multi-year consolidation was broken recently, an extremely bullish case for Ethereum according to Pankaj Balani, co-founder and CEO of the Singapore-based Delta Exchange.
Ethereum rallied to reach a new all-time high of $2,868
Starting the week in the $2,200 range, ETH received an incredible amount of upward momentum, breaking several all-time high records along the way reaching a price of $2,868 on the first of May before stabilizing around $2,830 for the time being.
Whether this trend continues is unclear, however, with traders starting to prefer the ETH/BTC charts in troves, there is certainly potential for more upward movement.
But this doesn’t exclude the possibility of a significant retracement as noodle-handed investors and miners continue to create downward pressure on Ethereum.
Ethereum’s Valuation vs Traditional Companies
Ethereum’s meteoric growth in the past week has landed it among giants in traditional companies. Currently valued at $331 bln, Ethereum is now considered to be more valuable than a majority of real-world companies. In fact, if Ethereum was a real company it would have found itself in the position of the 26th largest company in the world.
With the latest moves, Ethereum rose from $260 bln in market cap up to $331 bln, overtaking Comcast, ICBC, ASML, Roche, Paypal, and Procter & Gamble. If this growth continues, Nestle, Walt Disney, Bank of America, Home Depot, and even the company that is partly responsible for the amazing interest in Ethereum Nvidia (valued at $373 bln) can be overtaken in terms of market cap.
What contributed to the meteoric growth of Ethereum price?
Although markets are unpredictable, following the largely volatile conditions in all Ethereum marketplaces, this rally and growth are supported by a few interesting real-world events, some of them driven by decisions and others by the psychology of traders. Here are the most likely candidates that contributed to Ethereum’s recent success:
- The European Investment Bank launched a “digital bond” sale on the Ethereum blockchain.
- DeFi Total Value Locked (USD) rose to $67.89 bln from $51 bln in the past month.
- Nvidia loses another battle against Ethereum miners with RTX 3080 Ti.
- Traders switching their focus and pitting Ethereum against Bitcoin
- Growing narrative about Ethereum eventually overturning BTC in marketcap in crypto communities
By Alex Peresichan, CTO of Zenfuse. Zenfuse is a trading platform with built-in connectivity to major exchanges, next-generation tools, analytics, portfolio management, and news aggregation. All delivered in an ecosystem that is fully extendable by developers.