Connect with us

Ethereum

Institutions are Betting on Ethereum, Will ETH’s Price Keep Rising?

Published

on

Important information: This is a sponsored story. Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, has marked been seeing its price steadily move up since April 27 making a new high of $4,100 (on Bexplus) on May 10.

At the beginning of 2021, ether’s price broke $2,000. Now, little after a little over 3 months, ether has exceeded the coveted $3,000 mark. Its market cap expanded as well to over $475 billion. As the time of writing, Ethereum has surpassed business giants like PayPal, Procter & Gamble, Netflix, and more.

Advertisement

Ether gaining popularity among institutional investors

The European Investment Bank launching a “digital bond” sale (€100 million) using the Ethereum network is  said to be one of the main reasons for the Ethereum’s new record. Increasing interest in decentralized finance has reportedly also increased demand for ether.

It is worth noting that Ether is becoming more popular among both retail and institutional investors, especially over the last few weeks. Grayscale, the world’s largest cryptocurrency investment management company, has more than 3.2 million ETH, accounting for about 3% of the total supply. This greatly reduces the total supply of Ethereum in circulation, which means there’s less supply out there to meet demand.

Moreover, Visa announced that it will settle transactions on Ethereum with cryptocurrency partners, and the current insufficient supply of ETH on exchanges has also played a role in its rising price, as the amount of ETH on exchanges recently hit a 28-month low.

Advertisement

Although Bitcoin is still the number one cryptocurrency, ether’s price rise has seen speculators predict a “flippening,” in which ETH surpasses BTC’s market cap, could happen in the near future.

Will Ethereum’s price keep rising?

Institutional investor demand is rising at a time in which Ethereum Improvement Proposal (EIP) 1559 is soon set to be launched on the network. EIP-1559 is expected to help ether become a deflationary currency while significantly reducing gas fees on the network.

Since its upcoming implementation was confirmed, the price of the cryptocurrency rose by about 105%. If the trend continues, Ethereum’s price could keep on rising, although it has multiple challenges ahead if it’s ever to reach $30,000.

Advertisement

ETH 2.0

It is an upgrade to Ethereum’s network that allows investors to stake Ethereum for interest thanks to its move to a Proof-of-Stake consensus algorithm. The network is still in development, but there has already been over $1 billion of ETH locked in its staking contract, which decreases supply.

Altseason

It will affect the cryptocurrency market. When bitcoin’s price ticks down, most altcoins follow suit. Ethereum has been outperforming BTC significantly during this altseason, but it has a long way to go to get to BTC’s doorstep.

High transaction volumes

High transaction volumes have clogged the Ethereum network, leading to rising transaction fees. These fees are paid to miners who often sell their tokens on the market to keep their operations running.EIP-1559 could see some of the ETH paid get burned, further reducing supply.

Advertisement

What should you do to this ETH bullrun?

If you don’t hold ETH but still want to catch up with this bullrun, you may try to trade ETH at crypto exchanges. Bexplus is a leverage trading platform that doesn’t any KYC- registration is done through Email verification.  Transaction fees on it fees are lower than on most other exchanges.

Bexplus also provides its users with a 100% deposit bonus, and an affiliate program with up to 50% commission rewards. You can trade BTC, ETH, LTC, EOS, and XRP futures.

  • No KYC required, register with an email address
  • Demo account with 10 BTC for traders to get familiar with leverage trading
  • 100% bonus on every deposit and 10% off transaction fees
  • Intuitive and full-featured App on Apple’s App Store and Google Play
  • 24/7 customer support and analysts service (https://t.me/Bexplus_Jane)

News Source

Advertisement