The major cryptocurrencies opened this week at an accelerated rate of appreciation. O ether (ETH), native to the Ethereum network, registered a new price record this Monday (8) while continuing to be driven by decentralized finance (DeFi), NFTs and expectations about metaverse projects. O bitcoin (BTC) also took advantage of this heating of the market and hit its historic high.
Ether sets new price record
According to the price index CoinDesk, the ether came to be traded by unpublished US$ 4.794, after a 4% increase in the last 24 hours. The cryptocurrency has been on a steady rate of appreciation since the end of October, hitting multiple records in the past two weeks.
Ether’s new historic maxim was not caused by any specific event. In fact, experts attribute the new price record to simple increase in demand for the purchase of digital assets. However, this increase in demand for the cryptocurrency is related to the growing practical utility of the Ethereum blockchain.
Increased demand for cryptocurrency drives high
Currently, most of the NFTs and of projects related to non-fungible tokens is hosted on the network Ethereum. In addition, smart contracts, the basis of decentralized finance (DeFi) are also focused on that blockchain. Since the name change from Facebook to Meta, ether has been driven, albeit indirectly, by its important role and future participation in platforms dedicated to metaversos.
“It’s important to note that the recent rally (in the cryptocurrency market) appears to have been driven by increased demand in the spot market, where there is currently very little liquidity on the seller side,” said Mikkel Morch, CEO of cryptocurrency fund ARK36, The CNBC. The expert added that bitcoin is now touching its current price record and that a new milestone of $70,000 “looks imminent.”
Bitcoin rides the crypto market’s valuation wave
although the bitcoin is not a cryptocurrency recognized for its practical uses, even because its network is based on a model considered to be expensive and poorly optimized for transactions, the asset has been benefiting from the upward trend in the digital currency market.
Riding the valuation wave, the main and most valuable cryptocurrency in market value touched its all-time high on Monday. Index data CoinDesk indicate that bitcoin was traded for up to US$ 66.530 this morning, very close to its current record of $66,974 recorded on October 20th.
At the time, cryptocurrency had been boosted by the debut of the first bitcoin ETFs (Exchange-traded fund) on the US stock exchanges. The news was received with great enthusiasm and was considered an important milestone for the digital asset, increasing its exposure to investors in the traditional financial market and receiving legitimacy from the US Securities and Exchange Commission (SEC).
These new bitcoin and ether prices are consequences of a much broader movement. There are several projects, tools and technologies on the rise that make use of blockchain and cryptocurrencies. Market expectations are high and are driving key digital assets.
For example, some of the biggest and most important DeFi services, including Uniswap (decentralized cryptocurrency exchange) and the Aave lending platform, run on the Ethereum network.
Also, we are seeing a new peak in NFT trading. Whether it’s digital art, sports club collectibles, or blockchain gaming digital assets, these non-fungible tokens focus primarily on Ethereum. For example, most marketplace transactions OpenSea, the largest on the market for NFTs, takes place on this network. The famous “play to earn” game Axie Infinity is fully hosted on this blockchain.
While this sector has been growing in recent months, Facebook, or rather, the Meta is being an important catalyst. Since the company’s name change, a lot has been discussed about metaversos, the future of the internet and the important role that cryptocurrencies, especially ether and the blockchain Ethereum, will play in everything to come.
Finally, the Ethereum network is modernizing. Currently, blockchain transaction fees are staggering, reaching over $200 for a single asset transfer. However, the most important update of recent years should take place in 2022, the Ethereum 2.0, migrating the entire network of a model “proof of work”, considered outdated, for the fastest and cheapest “proof of stake” with promises to reduce transaction fees and the blockchain’s environmental impact.
With information: CNBC