On Thursday morning, Ethereum, the world’s second-largest digital currency, hit a new high of $2,800. This comes after the European Investment Bank (EIB) launched the world’s first digital bond on the Ethereum blockchain, which is the underlying network of ether.The reduced GAS fees is also the main source of funding and a big support for ether right now.
In a recent tweet popular New Zealand-based crypto analyst and influencer Lark Davis (@TheCryptoLark on Twitter) believes that $ETH Price is headed to $10K (and higher) in this bull cycle, said that with the prospect of $ETH becoming a “deflationary asset” (following the “London” network upgrade, which should be going live on the mainnet in July and which will include EIP-1559) and the ability to earn around 5% a year in passive income by staking Ethereum, he might never sell his $ETH holdings.
Low transaction fees have increased network activity, resulting in a rise in Ethereum’s price. According to Coinmetrics, the number of registered Ethereum addresses has surpassed 771,000 for the first time. The previous all-time high was set in November 2020, when DeFi and DEX platforms like Uniswap gained popularity, boosting Ethereum’s operation.
With the London hard fork on the horizon and low transaction fees, ETH holders are encouraged to move funds across the network. However, as more options for traders and users become available, Ethereum’s “blockchain strategy” can become its own competitor. Nobody is immune to the effects of technology, and those whose products are more affordable will gain a larger market share.
At the time of writing, Ethereum’s price is hovering around $2,749.24. Bitcoin’s dominance of the crypto market fell below 50% last week for the first time since August 2018 and is trading at $54,755.50.