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Ethereum soars over $4000 as institutions join the bull run

Photo of: Joseph Stone
by Joseph Stone

It’s done, the Ether establishes to new ATH at over 4,100 dollars. In the space of a week, the price of the crypto has jumped by 1,000 dollars.

In late 2020 and early 2021, it was Bitcoin that was the talk of the town for its ability to break records and set new ATH. In recent weeks, it’s undoubtedly Ethereum that’s taking all the spotlight.

There is no shortage of reasons for this. A week ago, ETH was already making a splash. For the first time, it passed the $3,000 mark. But nothing seems to be able to stop this march forward.

As a result, on May 10, Ether is now quoted at over $4,100. In the space of a few days, therefore, its price has risen by another $1,000. And it is hard to see why this rise should come to a sudden halt.

Ether’s surge is attracting new investors. Bitcoin used to attract almost exclusive interest from institutional investors. This is no longer the case. The latter are rapidly adopting Ethereum.

As detailed in a report by Coinshares, institutional investors bought more than $30 million worth of ETH in late April alone. As a result, fund managers are now reportedly holding $13.9 billion in ETH or ETH vehicles.

Up today by nearly 4%, the total capitalization of Ethereum is approaching the 400 billion euro mark at a rapid pace. But if ETH continues on its current trajectory, that threshold could be reached in the coming days.

In dollar terms, Ether is already peaking above the 400 billion mark, at over $450 billion. With this level of capitalization, it dwarfs renowned multinationals like Wal-Mart. The leading US bank, JPMorgan Chase, is within Ether’s reach now.

But how to explain such a strong and sudden inflation of the price of the 2nd of cryptocurrencies? First, there are the uses of the Ethereum blockchain. With DeFi and NFTs, it has 2 powerful growth engines.

In addition, traditional finance is in turn interested in the potential of the public blockchain. At the end of April, the European Investment Bank (EIB) issued its first €100 million digital bond on Ethereum.

Ethereum, in its current architecture, is therefore attracting strong adoption. However, it is also continuing its own transformation with ETH 2.0. More than four million tokens are now being staked on the blockchain, which is approaching the industry leaders.

Finally, the network should address its main issue this year: fees. Two infrastructure updates are on the agenda for the coming months, including the “London” hard fork. The activation of this hard fork should overhaul the ETH fee structure.