After the recent downturn in the cryptocurrency markets, Ether climbed to new highs all the time amid a number of important events and indicators. Overall, 2021 promises to be a major year for the Ethereum blockchain as developers continue to work on integrating the network with Eth2, resulting in the blockchain diverging from the original Proof-of-Work consensus algorithm in favor of energy and announced cost. Effective consensus evidence for this effort.
Although the technical details may not apply to many users and regular Ether (ETH) traders, the recent change in the price of ETH, along with a number of important developments, indicates that the momentum has lifted ETH to a new level. The maximum period may last at the end of April for some time.
The price of ETH rose about 15% in the past week, which is also the second largest cryptocurrency in the world by market value, reaching a record high of $ 312 billion. The price of ETH continued to rise on April 28 when news came that the European Investment Bank had launched a “digital bond” sale on the Ethereum blockchain.
These bonds have a great value – about $ 120 million over two years, with the large financial firms Goldman Sachs, Banco Santander and Societe Generale managing the bonds. Most importantly, the bond was registered directly on the Ethereum blockchain.
In late April, the Ethereum ecosystem saw a new milestone as the major decentralized financial platforms Uniswap, Compound, Maker and other executives are about to smash $ 73 billion into their smart contracts on the Ethereum blockchain. This equates to $ 18 billion in monthly growth.
Another factor driving the ETH price to new full-time points is the record open interest in Ethereum options contracts, which reached a record $ 4.2 billion in April. As previously reported, these options expire at $ 930 million at the end of the month, allowing buyers to purchase ETH at a price already negotiated with the seller for each specific contract.
A combination of factors works
Analysts seem to agree that a number of factors have influenced Ether’s recent pressure to land new full-time jobs. Simon Peters, a market analyst for the eToro social trading platform, told Cointelegraph that the popularity and success of DeFi platforms and other Ethereum-based apps and facilities are driving institutional investors to gain access to ETH. “At the heart of this demand from institutional investors, although they may now have some influence on Bitcoin, institutions are now diversifying their influence, and Ethereum is the next natural choice,” he said.
Johannes Rudd Jensen, Director of Products and Projects at eToroX Labs, emphasized that the issuance of Ethereum-based EIB bonds is an important milestone in adopting blockchain technology in the traditional banking sector. Jensen told Cointelegraph that blockchain-based bond issuance is becoming increasingly popular as an environmentally friendly response to costly settlements in traditional analog bond markets. “By choosing Ethereum, the EIB is indicating its intention to play an increasingly active role in supporting climate policy and innovation in the European Union in line with the European Central Bank’s recent focus on green banking,” he said.
Jensen agreed that this action signals the intent of banks and large financial institutions to use public blockchains for traditional financial products in the future. This once again illustrates the general trend of open standards in corporate banking:
“Having a unified, unified data source in the bond markets will reduce reliance on brokers, which is likely to reduce costs and support risk mitigation before release and after trading.”
Jordan Stuyff, head of cryptocurrency and trading at financial services firm Skrill & Neteller, assured that the number of users and active Ethereum wallets is at a very high level, proving “strong network impacts in the ecosystem” leading to higher gas prices and market growth … ETH value. Stoev told Cointelegraph that the growing popularity of DeFi platforms and decentralized apps is an important factor in attracting investors to Ethereum:
“Unlike previous cycles, where ICOs and speculation were the main drivers of Ethereum’s growth, this cycle has legitimate use cases like DeFi, NFT and others that people are already using. It is expected that long-awaited updates such as EIP- 1559 and Eth2 further enhance Ethereum’s usability, speed and cost, as investors look to reach before they arrive. “