- Ethereum now trades above $3,000
- Factors behind ETH surge
The price of the number one alternative cryptocurrency, Ethereum, has hit the $3,000 level for the first time in its history. This comes barely two months after the alt broke above $2,000, adding yet another wing to its feather.
The $3,000 mark means Ethereum has now surged by 1,300 percent in the past year and has a market cap value of $352 billion, making it a more valuable asset than Walt Disney Company and Bank of America.
ETH traded at $760 in January 2021; this followed an impressive surge towards the end of 2020 when it dropped as low as $90 after the March COVID-19 market crash. The coin sustained its bull run from late 2020 and managed to break its previous ATH in 2018 at $1440.
ETH arguably is one of the best performing large-cap cryptos in 2021, even ahead of BTC. Brief retracement has hindered the coins bullish cycle this year as it managed to break the $2,000 level and now the $3,000 months after entering $2k.
Behind the rise of Ethereum and ETH flipping BTC as largest crypto
ETH’s massive bull run has sparked conversations and arguments that the altcoin could flip Bitcoin as the number one cryptocurrency this year. Whether true or false, the alt has several reasons to point at for its massive surge this year.
One of them is the ongoing rise in on-chain activities alongside activities of institutional entities. The European Investment Bank weeks back joined this league, announcing it would issue a two-year digital bond worth $121 million alongside Goldman Sachs.
Retail interest in DeFi, which has also been rising recently, is another factor. Recent upgrades on the ETH network also is another reason which has ultimately helped the coin price surge.
Beyond Bank of America and The Walt Disney Company, that ETH market cap has flipped, the coin is now worth more than PayPal, Toyota Motor comp., and Netflix.