In the midst of an excellent bull market for the whole cryptocurrency, Ethereum stands out in style.
On the one hand, we have the emergence of DeFi and the NFT craze. On the technical side, we have the EIP-1559 update coming in July. And on the corporate side, Visa settling transactions in USDC, the EIB’s € 100m digital security and the launch of CME Ethereum Futures.
In addition, ETH’s price continued to rise as BTC stumbled. This is unprecedented. It was a cryptocurrency rule that Altcoins followed Bitcoin wherever it went. Bitcoinist reported the phenomenon as it happened:
“Mira Christanto, a Messari researcher, recorded a negative correlation between Bitcoin and Ethereum on the daily chart. With -4% and + 7%, respectively, Christanto stressed that this is an atypical event and may be “indicating the beginning of a new phase”.
Action in the Ethereum ecosystem
Bitcoinist also reported that the two biggest players in the DeFi space recently exceeded $ 1 billion in total blocked value. And Ethereum is expected to exceed TVL’s $ 1 billion alone in the near future. Even if it is a drop of water in the sea that is the global financial system, it is important to remember that the entire DeFi space has existed only a few years ago.
On the other hand, when the EIP-1559 update is in effect, the Ethereum Virtual Machine will burn a portion of the fees for each transaction. This will make ETH a disinflationary asset. The miners are already rebelling against the upgrade, which they believe will steal a portion of their earnings. The real question, however, is how will it affect the price? Only time will tell.
You know you are involved in a MAJOR bull market when you repeatedly catch yourself saying:
“I sold some way too early”
“I could have been a millionaire if only ____ (fill in the blank) _____________________ $ ETH pic.twitter.com/9P5fxx1XWc
– Peter Brandt (@PeterLBrandt) May 6, 2021
One of the great stories of the crypto market in recent months is how global finance has adopted Bitcoin. However, making less noise, Ethereum also gained space in institutional acceptance. Credit card giant Visa will not only accept USDC to settle transactions, but will also operate its own Ethereum nodes.
Last week, the European Investment Bank announced the creation of a two-year Ethereum digital security. In a timely manner, Bitcoinist reported:
Citing undisclosed sources familiar with the matter, the notes will be registered on the Ethereum blockchain using smart contracts, and the sale itself will be managed by banking giants like Goldman Sachs, Banco Santander SA and Societe Generale. Tokenized bonds could then, in theory, be issued to buyers through an Ethereum portfolio.
This is a great sign of acceptance by respected global financial institutions. In February, we received another signal. The Chicago Mercantile Exchange or CME has released ETH futures on its platform aimed at financial institutions and big players. Some analysts think that this is the time when Ethereum’s unprecedented bull run began.
The product continues to gain ground against Bitcoin CME futures, as reported by Bitcoinist:
During the first seven trading days, the volume of ETH futures in the CME was only US $ 23 million. Recent data shows that week-long volumes are now totaling $ 353 million – a new historical record that continues to be broken continuously.
The figures provided by CryptoCompare reveal that CME ETH futures represented 1.36% of its BTC equivalent to the beginning, but have since reached 9.36%.
In conclusion, we are in the middle of “ a big bull market ”, As Peter Brandt said. And it’s time for Ethereum to shine.