Amid market value surge speculations, Ether, the second largest cryptocurrency, took the crypto market by storm in less than a week after hitting a new price of $ 4,070, an increase of + 3.98%.
The new price is seen just in the middle of growing interest from many big institutional and investment firms. For example, in the last month, FundStrat, a Wall Street investment research firm, showed interest by predicting that Ether could rise to $ 10,000 within this year.
Ethereum price is said to have risen nearly 4 times in a single year, outdoing its immediate market rival Bitcoin. Bitcoin, the largest cryptocurrency, has only doubled within the year.
This year’s new Ether price has been because of high speculations on DeFi and NFTs which act as the building blocks of Ethereum blockchain.
High demand, low supply, and Coinbase premium listing are said to be some causes of Ether price surge. This is according to Ki Young Ju, Crypto Quant CEO.
Ethereum’s market cap now stops at $470 billion. In case this upward trend is maintained, it’s estimated that Ether’s market capitalization is likely to be half of Bitcoin, which currently stands at $1.107 trillion.
Investors are currently paying high for Ether leading to its insane Coinbase premium listing. More industries, firms and institutions are likely to join the crypto world.
“New money is flowing into the crypto market,” said Ki Young Ju via his Tweeter handle.
However, the stiff market competition seen between Ethereum and Bitcoin is a sign that cryptocurrencies are highly volatile. Investors should take proper caution before ‘throwing in’ their money.