Ethereum ETH token surpassed the $ 3,000 psychological value per token today, climbing to $ 3,003 on Binance at the time of publication. ETH has noticed many major exchanges, including Bybit, Coinbase, and BitMEX.
Growth helped Ethereum surpass organizations such as The Walt Disney Company and Bank of America in terms of overall market cap. World’s largest Tier 1 smart contract support growth of 24% weekly to $ 346.72 billion per infinite market size tracking website. By comparison, Bitcoin’s market cap is currently $ 1.079 trillion, below the total market value of the precious metal silver at $ 1.416 trillion and higher than the social media company Facebook to $ 923.12 billion.
This remarkable growth sparked new rumors that Ethereum could “convert” Bitcoin, overtaking BTC as the world’s largest digital currency.
Several headwinds are responsible for Ethereum’s growth. The first is the ongoing increase in chain activity, including from institutional structures: earlier this week, the European Investment Bank announced a $ 121 million two-year digital bond in partnership with banking institutions such as Goldman Sachs. Retail interest in DeFi has increased recently, with total booked values reaching impressive heights of over $ 100 billion.
However, London’s Hard Fork, which includes an overhaul of Ethereum’s EIP-1559 fee structure, as well as the impending transition of ETH 2.0 to a proof-of-stake consensus model, could be a major development for investors. It is expected that these network upgrades will significantly reduce fees and reduce the amount of ETH being rewarded to miners, which in turn reduces sales pressure on the asset.
David Hoffman, host of educational media company Ethereum Bankless, equated the various initiatives with three separate halves, an event that occurs roughly every four years when the Bitcoin block grant is cut in half. Half is believed to contribute to the valuation of Bitcoins.
However, Ethereum has some competition in the form of other Tier 1 chains with support for smart contracts. Ethereum’s growing popularity is partly responsible for the chain’s unprecedentedly high transaction fees (although it has fallen somewhat in recent weeks), and the lack of viable second-level solutions such as bundling operations means that many competitor chains have seen an increase in activity.