After Bitcoin, the second most popular cryptocurrency, Ethereum, is on a fresh surge. The digital coin conquered $2000 in a 24-hour high before correcting just below it at approximately $1,900. Analysts explain that the crypto coin will rally past $2000 towards fresh highs very soon.
The last 24 hours witnessed a major price rally in Ethereum alongside BTC (Bitcoin). The rally had strong momentum, says market analysts who think that the prices will boost more in the near future. Along with this, the Ethereum blockchain has also been facing a surge in demand lately.
To analyze further, there are 3 main reasons that can justify the ETH price rally. To name them, they are a rapid boost of DeFi, the Ethereum hype in the crypto market after the new CME futures listings and the dearth of BTC and ETH in exchanges.
Interest In Ethereum In The Crypto-Market Surges
It is not a coincidence that the first time Ether hits $2000 comes only after the CME futures listing that came out at the beginning of this month. This helped turn institutional investors towards Ether. The publication of the listings proved the rumor that went about the market saying that this CME listing can affect the Ethereum market.
To come to the surge in DeFi, ETH is directly impacted by TVL (total value locked). And interestingly, DeFi has acquired a TVL of approximately $50 billion. Ethereum benefits from the high TVL of the DeFi market as the ETH blockchain network is used to pay DeFi transaction fees.
This leads to the continuous surge of BTC that has no signs of stopping yet. BTC and ETH go into investors’ wallets as long-term investments. This has reduced the selling pressure of these leading cryptocurrencies making their price surge smooth and stable.