Ethereum has crossed the $3000 trading mark and Bitcoin also traded above $45,000 valuation in what seems like a continual bull run in the crypto market.
Usually, investors contemplate taking advantage of a bull run by stocking up on the currency, with hopes that the run continues. Others may be waiting. That’s why we are here to help you become more informed.
For more context, Ethereum is the second-largest cryptocurrency with over $360 billion market capitalization.
Ethereum is a decentralized blockchain network engineered by the Ether token. This token allows its users to make transactions, use and store nonfungible tokens (NFTs), trade cryptos, among other activities.
There have been speculations over Ethereum’s future and sustainability, while some even argued that the altcoin might compete with Bitcoin in the future.
However, a fact to note is that the altcoin has gained over 20% over the last seven days, creating speculations in the investment space.
Here are some key takeaways to note for investors:
- Ethereum recorded a 1,461% increase in its trading volume from January to June 2021, according to a report by Coinbase. The coin’s trading volume rose from $92 billion in 2020 to equal $1.4 trillion in the first half of 2021.
- Ethereum outperformed Bitcoin, gold, and the S&P 500 in price performance, totaling 210% as of June 2021. Bitcoin rallied 20%, gold declined 6.7%, and the S&P 500 rose 14%.
- A major reason for the Ethereum bull run is the London hard fork upgrade carried out this week.
The London hard fork upgrade effectively turned Ether into a deflationary cryptocurrency. Since the upgrade, Ethereum has burned 12,670 ether (an equivalent of $40.5 million)
According to the Coinbase report, Ethereum’s growth has primarily been influenced by several factors such as its decentralized finance, optimism by the expected full shift to the proof-of-stake mechanism. We advise investors to invest wisely despite the Ethereum bull run.
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