Ethereum price rises above $ 3000 for first time

Ethereum price rises above $ 3000 for first time

The cryptocurrency Ethereum broke the $ 3000 mark on Monday. At the beginning of the week, cyberdevise rose by up to eight percent to a new record high of $ 3201, according to data from analytics firm Coinmarketcap. Bitcoin rose by a good three percent to around 58,500 dollars.

Ethereum is by far the second largest cryptocurrency after Bitcoin. The market capitalization is now around 364 billion dollars-almost as much as the stock market value of the Dax heavyweights SAP, Siemens and Allianz combined.

Overall, the Ethereum increase since the beginning of the year thus amounts to about 350 percent-Bitcoin, on the other hand, increased by only about 100 percent in the same period. This also reduces the dominance of Bitcoin: at the beginning of the year, the value of all Bitcoins still accounted for around 70 percent of the market capitalization of all around 9,500 cryptocurrencies worldwide. According to Coinmarketcap, this share has now fallen to 47.8 percent. For Ether, on the other hand, this figure rose from a good ten percent to 15.4 percent over the same period.

Some experts see the first signs of a so-called «alt-season», a phase in which «Alt – Coins» – short form for alternative cryptocurrencies experienced alongside the Bitcoin big upswing.

According to Naeem Aslam, chief market analyst at broker AvaTrade, many investors viewed Ethereum as undervalued compared to Bitcoin. The enormous demand from institutional investors can be seen, among other things, in the fact that two listed Ethereum funds (ETFs) are already on the market in Canada.

In the medium term, the cryptocurrency, according to Aslam, has air to rise to 5000 dollars, then to target the 10,000 mark. Such price developments are not uncommon in cryptocurrencies, as recently demonstrated by the rapidly growing popularity of the former niche tokens Dogecoin and SafeMoon.

Second largest cryptocurrency benefits from trending topics «DeFi» and » NFTs“
In addition, Ethereum benefits from the trend topics «DeFi» and «NFTs», says analyst Timo Emden from Emden Research. «DeFi «stands for» Decentralized finance», and refers to financial applications based on blockchain technology. This includes, for example, credit transactions or other banking services.

«NFT «stands for non-fungible tokens, roughly translated as»non-replaceable tokens». This is a unique crypto tokens are tradable, but cannot be changed. This makes them suitable as digital collectibles, which are becoming increasingly popular on the net and in the gaming community, but also in the arts. The use cases range from trading cards to the protection of copyright for music pieces.

Since Ether is not only digital means of payment, but transactions can be subject to certain conditions, it is particularly suitable for DeFi or NFT transactions. This is made possible by the Ethereum blockchain, i.e. the digital infrastructure through which Ethereum transactions take place.

At least in terms of market capitalization, Bitcoin is still far ahead of Ethereum. The value of all digital Bitcoin coins in circulation is about 1.1 trillion dollars-about three times as much ethereum.

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