The indicators are positive for Ether. The Berlin update of the blockchain has reduced transaction fees and is pulling activity into DeFi. But traditional finance is also growing on Ethereum.
Bitcoin’s latest drop last week highlighted Ethereum’s robustness and Ether’s performance. ETH was indeed more resilient than BTC, which was down more than 20%.
But Ether also stands out on its resilience. Since the recovery, the world’s 2nd largest cryptocurrency has been moving faster. Over the past 5 days, ETH is up more than 27%.
For example, on April 25, its price was close to $2,100. During the day of April 27, it even climbed to almost 2,700 dollars. The next day, it was still up by a little more than 2%. On April 28 at 9:00 am, its price was 2,593 dollars on TradingView.
But how can we explain this Ether dynamic? It is mainly due to the growth of activity on the Ethereum blockchain. Decentralized finance and NFT, the non-fungible tokens, are booming sectors.
As for transaction fees, a thorn in the side of Ethereum and companies on the blockchain, they are easing. Developers have recently (April 15) addressed this issue through the Berlin update.
And these developments are already bearing fruit. Costs are down, which is helping DeFi activity to pick up. The most popular DeFi protocols, such as Uniswap and SushiSwap are seeing significant transaction volumes.
Activity on Ethereum is a fundamental growth driver for the Ether price, which has been able to reach $312 billion in capitalization. As a result, traders are expecting new ATH and an upward trend over 2021.
And the recent formalization of a banking transaction on the blockchain is helping this trend. As Reuters reports, the European Investment Bank is launching a digital bond sale leveraging Ethereum.
Thus, the EIB will issue a digital bond worth €100 million ($120.8 million) over two years. The sale will be led by financial heavyweights Goldman Sachs, Banco Santander and Société Générale.