The next update of the network and DeFi applications could be influencing the price. The overall market is moving in a positive direction with Bitcoin close to USD 10,000.
For the first time in over 1 year, the Ethereum network’s cryptocurrency Ether (ETH) reached the USD 300 mark per unit in the market. Last July 26th, the crypto asset reached USD 307, a price that it had not registered since July 9th, 2019, when it traded at USD 307.78, according to data from CoinMarketCap.
Positive numbers precede the current momentum of the native cryptocurrency of the smart contract network. Ether has gained 31% in the last week, and it has risen by about 6.7% in the last 24 hours. By doing so, it outperforms Bitcoin (BTC) in terms of yield. The first cryptocurrency has gained 6.1% and 1%, respectively, in the same periods.
The reasons behind the rise in the price of ETH could be two: the recent announcements by project developers, such as Vitalik Buterin, about the network’s update Ethereum 2.0, and the rise of DeFi applications that use this blockchain for their operation. The Ethereum token market is worth more than its currency.
Regarding this behavior, Spanish cryptocurrency trader @Inmortalcrypto considers that Ether will exhibit better behavior than other currencies during the rest of 2020 and 2021.
The trader considers that, in the next months or early 2021, there could be a growth season for altcoins, which Ether would lead.
The trader’s point of view contrasts with the usual behavior of the market, which usually follows in the footsteps of Bitcoin. When BTC rises, altcoins do likewise, just as happens when the former drops. A correlation graph from CoinMetrics shows that the relationship between the price movements of ETH and BTC is close to their highest point, around 88%.
However, given that Bitcoin has a larger and more liquid market and a much higher price, percentage variations in its price are lower than those of other cryptocurrencies. Ether is an example of an altcoin that reflects higher percentage movements since it has a smaller market than BTC and its market price is lower.
The launch of Medalla, the last test network before the arrival of Ethereum 2.0, will take place next August. According to developer Danny Ryan the platform will be more open to other community participants.
The market in Positive Figures
Beyond the push of the Ethereum cryptocurrency, the overall market shows positive numbers. In the last 24 hours, Bitcoin (1%), XRP (4.3%), Bitcoin Cash (5.4%), Cardano (11.7%), and Litecoin (9.8%) experienced an increase in their price, according to data from CoinMarketCap.
Another prominent piece of data on the market is that of total capitalization, which exceeded USD 300 billion, a figure that it had not reached since last February. Besides, the total trading volume also exceeded USD 61 billion in the last 24 hours.
Concerning market dominance, Bitcoin (59.6%), Ether (11.3%), and the stable currency USDT (3.40%) are in the lead.
By Alexander Salazar