The unending rally of Ethereum came when the other cryptocurrencies have been facing a bearish momentum. After making a low of around $2,200, the price of Ethereum has been treading high every day. It broke all resistances before it hit the old all-time-high and even made a new ATH at $2,800 yesterday. As this happened, the currency’s market cap also rose to a record $320 billion, flipping PayPal’s market cap. At the pace with which Ethereum is growing, we have to wait and see if it will flip the market cap of Bitcoin in the future as it sets continuous ATH.
Ethereum just flipped the market cap of PayPal.
— FTX App (@ftx_app) April 29, 2021
Ethereum sets a new ATH and flips PayPal
Ethereum has been testing new highs every day. It has gone bezerk as traders are still trying to figure out what the optimum price of the currency will be at this point. This is called a price discovery mode. And during this time, the price of currencies pushes higher to check an optimum trading price for the coin. Then once the price of ETH stabilizes, we might see a few cool off days and consolidation happening. Only after that can we expect the rally to continue again.
The recent price increase can also be dedicated to the increased use of Ethereum in NFT trading, DEfi, and many other applications that have led to an exceptional demand rise recently. In fact, institutions are also taking note of this and are investing in it. We have also been seeing new Ethereum ETFs being approved that have bough huge investments in the game. And in the future, if such ETFs get approved in the US, we can expect an even bigger rally.
Talking about the new feat that Ethereum achieved was flipping PayPal’s market cap. Presently, the market cap of PayPal is around $310 billion, and when ETH hit $2,800, its market cap was $10 billion higher.
The future is bright for ETH
Yes, once the SEC approved crypto ETFs in the US, we are going to see a phenomenal adoption of the same. Reports suggest that the new chairman Gary Hensler is also in favor of the same and might probe the SEC to look into the same. In Canada, there are already 4 Ethereum and 4 Bitcoin ETFs that have been approved. And they are doing really well. So, if the same happens in the US, whose market size is approximately 26 times bigger, then we can expect something big.
Very soon, we are also going to see the new Ethereum updates being rolled out. This will include the burning of tokens, more scalability, and lesser gas fees. These also have investors pretty optimistic about the future of the currency. If the crypto regulations in the US get better and things go as planned, there is a good chance that Ethereum might flip Bitcoin to become the largest cryptocurrency in the future.
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Also Read: Asian Video Game Company Nexon buys $100 M in Bitcoin.
