ETH surpassed $1,200 for the first time in almost three years, extending its weekly earnings to 62%.
The bullish fervour surrounding the Ethereum (ETH) intensified on Wednesday, when the second largest cryptomone currency surpassed $1,200 for the first time in three years. The gains were largely driven by a confluence of fundamental factors, including the parabolic rise of Bitcoin, the anticipation of ETH’s futures contracts and a rising DeFi sector.
Bullish buying on the downside pushed the price of Bitcoin to a new all-time high of $36,574
The price of ETH exceeds USD 1,200
Ether’s value peaked at $1,223.84 in Bitstamp, the highest since January 2018, just before the market reached its peak. At the time of this article, ETH was up 8% and trading just above USD 1,210. The cryptomone currency rose more than 60% during the past week, taking its market capitalization to USD 135 billion.
Price of the ETH/USD pair in Bitstamp
At the current rate, Ethereum seems positioned to beat its previous high of USD 1,432.88, possibly within the next few days.
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Bitcoin squeezes the whole market
As 2021 progresses, Bitcoin’s gravitational pull on the crypto market has intensified. The flagship cryptomone has just reached a peak of USD 37,150 and is still rising.
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During the last month, Bitcoin has gone up almost 90% thanks to the growing institutional interest and the scarcity of available supply. Ether and other digital assets have taken advantage of Bitcoin’s leadership. In fact, there’s some evidence to suggest that institutional investors are looking to ETH as the Bitcoin business fills up with players with larger pockets.
CME is about to launch ETH futures
WEC Group has also identified a growing institutional interest in Ethereum and has announced plans to launch a new ETH futures product next month.
Bitcoin price must reach $1 million for 1 satoshi to reach parity with 1 cent
From February 8th, traders will have the opportunity to bet on Ethereum through regulated exchanges. The new futures product, called CME CF Ether Reference Rate, will provide traders with more efficient exposure to digital assets, allowing for greater price discovery and possibly greater adoption in institutional circles.
The DeFi-mania is not over
While the DeFi-mania seems to have calmed down a bit after last summer’s record highs, the ecosystem is growing at the same rate as the overall market. As of Wednesday, virtually all of the DeFi currencies in the top 20 have posted double-digit weekly gains, some even exceeding the explosive growth of the Ethereum price.
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Since many DeFi projects are executed in the Ethereum block chain, the subclass has a positive impact on ETH’s price. According to CoinMetrics, DeFi-mania could drive Ethereum’s long-term growth.
Industry data also reveal a substantial increase in the total blocked value, or TVL, of DeFi projects. At the last check, nearly $21.7 billion had been locked into the ecosystem, the highest on record.