Before Wednesday’s Ethereum (ETH) price bomb, several underlying factors have accumulated in favor of the asset.
The price of Ethereum (ETH) jumped to new heights on Wednesday morning to trade just over $ 2,700, thus registering a new historic high. Meanwhile, the price of Ethereum has leveled off at around $ 2,592.79, up 2.61% in the past 24 hours, according to market data provided by CoinMarketCap. Notably, Ethereum was traded that morning for $ 2,713.58, setting its highest price since the beginning.
Ethereum’s market capitalization (ETH) was around $ 299.5 billion at the time of the report, according to the CoinGecko. In addition, its average daily trading volume was around US $ 31.5 billion.
The price of Ethereum (ETH) has now added approximately 53%, 12.3% and 11.3% in the last 30 days, 14 days and one week, respectively, according to CoinGecko. In addition, the asset grew more than 1200% last year, thanks to several underlying factors, both technical and fundamental.
Underlying factors influencing the ethereum price (ETH)
Before the Ethereum (ETH) price bomb on Wednesday, several underlying factors had accumulated in favor of the asset. Fundamentally, Ethereum as the second largest digital asset in market capitalization has received notable prominence from the cryptocurrency industry.
Notably, Ethereum played a significant role in last year’s bull market. Ethereum’s blockchain is a hub for most of the huge decentralized financial platforms, including Uniswap and SushiSwap, among others. In addition, the ETH ecosystem played a significant role in the non-fungible token (NFT) market, which had a major boom earlier in the year.
However, as an ecosystem, it encountered great resistance due to its low yield and high transaction rates. Other projects offering smart contract services, including Binance Smart Chain, Tron Foundation, among others, have been scaled as a better option among developers.
In an attempt to solve these challenges, Ethereum developers are working around the clock to update the ecosystem to meet the huge global demand.
Institutional investors have proliferated in the cryptocurrency market, especially in the decentralized lending industry. According to Grayscale’s latest daily update on its assets under management, the Grayscale Ethereum Trust is financed by institutional investors totaling approximately $ 8.15 billion.
In an attempt to help scale the Ethereum ecosystem and keep up with growing competition, developers recently updated the blockchain during the ‘Berlin’ update. As a result, Ethereum’s transaction fees have dropped to manageable levels.
In addition, developers are working on the launch of ETH 2.0 that will use the Beacon chain. Since launching at the end of last year, the ecosystem has registered a strong interest in validators to enable the proof of stake concept.
On April 22, 2022, the total number of validators in the Ethereum proof of stake totaled more than 122,000, with more than 4 million ETH already staked.