Ether has surpassed $ 2,000 with the blockchain’s native cryptocurrency Ethereum continues its one-year bullish run.
According to CoinDesk 20, ether reached a new record of $ 2,033.08, an increase of 6.18% in the last 24 hours, with the crypto market capitalization reaching $ 233.3 billion. Cryptocurrency increased 172.5% in the year.
Although ether reaching $ 2,000 would normally be a stop-the-presses event, it will almost certainly be overshadowed by the numerous milestones reached hours earlier by big brother bitcoin, including reaching a market value of $ 1 trillion for the first time and going up almost $ 5,000 in a 24-hour period.
But the rise of the ether and its growing popularity must not be forgotten. At least three growing areas of demand are fueling the increase in the ether price: decentralized finance (DeFi), Ethereum 2.0 stake and an ether market recently institutionally focused on the Chicago Mercantile Exchange (CME).
Often compared to oil, ether fuels interactions on the Ethereum blockchain, which is best known for hosting a variety of DeFi applications, such as the loan, trading and forecasting markets. Ethereum-based applications create a natural utility for ether, as cryptocurrency is required to settle transactions. DeFi currencies followed the same pace as ether, as shown by the DeFi Pulse Index (DPI), an increase of 83% in the last 30 days, according to Index Coop.
The bet on the Ethereum 2.0 network is also creating a shock in the supply of supports for digital assets. Eth 2.0 is an ongoing redesign of the Ethereum network based on a new consensus mechanism called proof of bet (PoS) and database fragmentation. About 2.7% ether worth $ 6 billion was deposited on the Eth 2.0 blockchain. These funds are blocked for about the next 12 months.
Finally, large investors, such as investment funds, may be interested in getting some exposure to cryptocurrency. CME launched cash-settled futures contracts for the digital asset on February 8. Contracts exceeded $ 160 billion in aggregate volume in the first week. Since CME is one of the oldest and most trusted exchanges in the US, the launch of the contract may signal a growing institutional acceptance of ether.