The bullish fervor surrounding Ethereum (ETH) intensified on Wednesday, when the second largest cryptocurrency exceeded $ 1,200 for the first time in three years. The gains were largely conditioned by a combination of basic factors, including the parabolic rise of Bitcoin forecasting ETH futures contracts and the DeFi sector is growing.
The price of ETH exceeds 1,200 USD
The value of Ether reached $ 1,223.84 on Bitstamp, the highest since January 2018, just before the market peaked. At the time of publication of this article, ETH is up 8% and is trading just over $ 1,210. The cryptocurrency has risen more than 60% over the past week, bringing its market capitalization to $ 135 billion.
At the current rate, Ethereum seems ready to break the previous high of $ 1,432.88, probably in the next few days.
Bitcoin is squeezing out the whole market
As 2021 progresses, Bitcoin’s gravitational pull in the cryptocurrency market has intensified. The main cryptocurrency has just reached a maximum of $ 37,150 and is still climbing.
Over the past month, Bitcoin has risen by almost 90% thanks to growing institutional interest and tight supply. Ether and other digital assets have taken advantage of the pace of Bitcoin leadership. Actually, there is some evidence to suggest that institutional investors are looking at ETH how bitcoin trading is filled with players with bigger pockets.
CME is about to launch ETH futures
The CME Group has also identified growing institutional interest in Ethereum and announced plans to launch a new ETH futures product next month.
Starting on February 8, traders will have the opportunity to bet on Ethereum through regulated exchanges. The new futures product, called the CME CF Ether reference rate, will allow traders more efficient exposure to the digital asset, allowing for greater price disclosure and possibly greater adoption in institutional circles.
DeFi-mania is not over
While Defi-mania It seems to have calmed down a bit after the highest record temperatures last summer, the ecosystem is growing at the same rate as the wider market. By Wednesday, virtually every DeFi coin in the top 20 had recorded double-digit weekly gains, some even greater than Ethereum’s explosive growth.
Considering many DeFi projects work on the Ethereum blockchain, the subclass has a positive impact on the price of ETH. According to CoinMetrics, DeFi-mania could to boost long-term growth of Ethereum.
Industry data also reveals a significant increase in total locked value, or TVL, for English abbreviation, on DeFi projects. At the last checkup, almost $ 21.7 billion they were locked into the ecosystem, which is the most recorded.