Ethereum has hit an all time high today of $2,720 as of writing this while most other cryptos are steady or slowly losing.
Why is this?
It all comes down to news and speculation about what might happen.
Ethereum is now 1/3 the market cap of Bitcoin and is starting to close that gap of the infamous flippening. Could it happen? YES why? Bitcoin really has no use cases besides an entry point into crypto and that the name Bitcoin is often times the first thing that comes to mind when you talk to someone about crypto. However that is starting to wear off as more and more use cases come forward about Ethereum and other crypto.
Ethereum over the years has built up a massive amount of apps and platforms that continue to support it even with higher fees. However some side chains are starting to pick up the slack but also a lot of platforms are getting smart about minting NFTs and when and how often they hit the block chain which is providing options to continue to use Ethereum even with high fees.
Ethereum will be going through a few hard forks this year many of which will start reducing/burning the supply of Ethereum as it's used in transactions. This will decrease the amount of Ethereum there is to go around. What I always love about the crypto industry is that the market reacts on the news and sells after it actually happens.
Just like every bitcoin halving the price sky rockets about 6 months before it happens and then sells off once it does happen.
Ethereum however might be a unique story and one I am interested to see how it plays out.
In my opinion the price will continue to climb as we get closer and closer to the days when Ethereum supply gets reduced. However that is still months away and during that time production and fees will continue on like normal.
Not only a reduction is supply but Ethereum will be going to a POS (Proof of stake) system at some point. Any POS
Ethereum constantly is in headlines for NFT sales, updates, mining, stocks and more. One of the most recent is the very real possibility of Ethereum opening up to European investment banks to launch a digital bond.
At the moments the talks of doing this would bring in a bond supply of $200 million which is a drop in the bucket for the market cap of 314 Billion. However it could pave the way for more money to flow in, in terms of bonds. To me this almost feels like a way for banks to try and get money as DeFi has recently caused some stress for banks as of late as more and more people are realizing how pointless and honestly how shady and corrupt they are to their customers.
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