At the weekend, Ethereum has broken for a short time the psychologically important mark of $ 2,000. What are the factors that propel the ETH price rally at the moment? The Market Update.
With 2.042,93 US dollars, Ethereum has reached on Saturday, a new all-time high. Since then, the second-largest cryptocurrency is market capitalization in a consolidation phase. Currently, the Ether-rate settles between 1,800 and 2,000 US dollars.
Within the last 24 hours, Ethereum fell to 3.22 percent and cost the editorial deadline for ETH 1.878,28 US-Dollar. On a monthly basis, Ethereum has risen but is still an impressive growth in the last 30 days of Ether rose by more than 50 percent. In the Following, we take a look at three key factors that contribute significantly to the enormous rate of growth of ETH.
Decentralized Finance (DeFi) to Ethereum continues to grow
The Total Value Locked indicator of DeFi Pulse, the current total value of the DeFi projects managed capital is more than US $ 41 billion. The concept of Total Value Locked (TVL) is used to measure the amount of capital that each individual DeFi-managed Protocol.
For example, if a decentralized Exchange (DEX), such as UniSwap (UNI) has locked two billion dollars in the Protocol, in order to provide liquidity, it means that the TVL of the Protocol, two billion US dollars.
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In addition, Ethereum is benefiting directly from a growing Decentralized Finance sector. This is because Ether is used as a means for the payment of transaction fees for each DeFi applications. Therefore, the higher the demand and use of DeFi projects is, the stronger Ether is in demand.
Institutional investors buy Ethereum
8. February 2021 the trade with ETH Futures launched on the Chicago Mercantile Exchange (CME). Prior to the Listing of many feared that the CME would make the price of ETH to decline significantly, because the Listing of the CME Bitcoin Futures have fallen in the year 2017 with the then all-time high together.
However, in the case of Ethereum, this was not the case, and since the Listing, the institutional demand for Ether has grown rapidly. Data Grayscale to prove this fact.
Grayscale is an asset Manager of digital Assets, which is used by many institutional investors to buy Bitcoin and other crypto-currencies. The graph above shows that institutional investors have increased after the introduction of the ETH Futures of their Ether holdings more. This Trend should continue, it is assumed that the ETH price has even more potential for growth.
Ethereum stock market stocks stood at a record low
On-Chain data in the past have shown that a decrease in the stock exchanges held Bitcoin or Ethereum is an indication that the price will rise. And Vice versa, an increase in the paid-in crypto indicates currencies to crypto exchanges to the fact that the rate falls, because investors want to sell.
Data from the crypto analysis company Crypto Quant show that at the weekend, very many Bitcoin on crypto-exchanges have been paid.
The can in the short term mean that investors want to get rid of your Bitcoin. While the Bitcoin-stocks rose on exchanges, it was not in the case of Ethereum, the case.
The Ethereum stock market stocks are at a record low. This is for the Ethereum course a very good sign, as an increasing institutional Ether-demand meets a steadily declining ETH range of crypto-exchanges. If this fact does not change and also the Ethereum DeFi sector continues to grow, it is expected that this will also have a positive effect in the ETH price will reflect.
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