Ethereum is just soaring above $ 3,000

According to data from Nomics, the price of Ethereum, the second largest cryptocurrency by market cap, reached $ 3,000 for the first time on Sunday night. After breaking that bar, it rose to a new high of $ 3,025. Ethereum's rise this week follows reports that the European Investment Bank (EIB) sold $ 121 million worth of digital bonds on Ethereum. Bloomberg Law reported that Goldman Sachs, Societe Generale and Banco Santander also played a role in the bond sales by the EIB. The news was considered another sign of Ethereum's persistence for a multitude of financial use cases. The EIB used Ethereum because the network allowed the creation of multiple exchangeable tokens, also known as ERC-20 tokens. The EIB test came after Santander used its Ethereum mainnet for its own blockchain bonds in September 2019. Both are statements of great support for the network. ETH times are changing. There are a number of highly anticipated Ethereum updates coming live in the coming months. On July 14, Ethereum will include an upgrade called EIP-1559. The upgrade will reduce the overall ETH supply by burning billions of coins to go to the miners. According to the supply and demand laws, EIP-1559 is generally expected to increase the price of Ethereum. Maybe just guessing that the upgrade will have this effect. Then there is a wider transition to Ethereum 2.0. This makes the network a proof of stock rather than current proof of energy intensive work. The first step in this transition is the so-called merger, which is temporarily scheduled for late 2021. Ethereum 2.0 also promises to lower transaction costs and increase network efficiency. Historically, Bitcoin pioneered price changes in the crypto market, followed by altcoins, including Ethereum. But the wave is changing. Earlier this year, Bitcoin accounted for about 70% of the market and Ethereum 12.8%. Now Bitcoin is 50% of the market and Ethereum is 14.

Join the Discussion

Back to top