Ethereum heading to all-time highs, meet some drivers

Ethereum King High

The price of ETH, the native currency of the Ethereum Blockchain, is heading to its all-time highs. Several are the factors that can be attributed to this rise in the exchange value of the second most important cryptocurrency after Bitcoin.

Among these factors, the London hard fork stands out, applied in the network at the beginning of last August. Also, the explosion of the fever of non-fungible tokens (NFT) and GameFi. The latter presents an unprecedented acceleration within the scope of Decentralized Finance. The GameFi are games on the Blockchain, which reward players with tokens.

In this way, a large part of Bitcoin users is captured by its main competitor. The result is that the price of ETH is no longer heavily dragged down by movements in the value of Bitcoin. The growth of the last two days is a clear testimony of the autonomy that some altcoins charge. Among the latter are SOL by Solana, DOT by Polkadot and ADA by Cardano, among others.

What is the main factor driving Ethereum towards all-time highs?

The fact that the price of Ethereum is heading to its all-time highs is striking given the current situation in the crypto market. The recovery in the price of Bitcoin runs in parallel with the return of the hash rate to limits prior to the censorship of mining in China. In the same route, the price of the rest of the altcoins including ETH moves.

However, the latter seems to distance itself from the price of Bitcoin. In that sense, the cornerstone was the implementation of the London hard fork in early August. Inside London, there were the controversial and revolutionary EIP-1559, which consists of the drastic cut in the number of coins in circulation. In other words, it removes a large amount of ETH from the market for good.

The latter creates a scarcity in the asset, causing an effect similar to that of Gold or Bitcoin, which sustain its appreciation in such a limitation. With the burning of ETH, interest grows in its adoption as a store of value. At the same time, waiting for the final ETH 2.0 update creates more positive sentiment in this coin.

At the time of writing, Ethereum’s price is $3,757 and remains on course for its all-time highs near $4,200 per coin. The highlight of this rise is that just two days ago, the price was trading at a little less than $3,200.

The impact of DeFi

Another factor that catapults the price of the second most popular currency after BTC, is Decentralized Finance (DeFi). The diversification of the functionalities of this universe attracts a growing number of investors. Many of them, from Bitcoin’s own security, turn to Ethereum to take advantage of DeFi.

Among the most used applications, apart from the traditional loan and liquidity-generating exchanges, are games. Among these, the phenomenon of Axie Infitiny and others takes center stage. These applications generate significant returns to investors, reporting unprecedented usability growth.

The MetaMask wallet, for example, reached 10 million monthly active users yesterday. With this, you can get an idea of ​​why the course of the price of Ether aims to reach its all-time high in a short time.

The performance of ETH in the last 7 days, amounts to a wide 20% and 4.87% in the last 24 hours. At the same time, Bitcoin presents a percentage growth of 5.74% and 4.20% in the same order. In market capitalization, Ethereum is close to 50% of that of Bitcoin. These are $931.4 billion the second and $440.9 billion the first. This data was taken from CoinMarketCap.

The phenomenon of NFTs

The last of the aspects that is heading to its all-time highs for the price of Ethereum, is the rise of NFTs. These are collectibles where all kinds of unique and unrepeatable creations are told. Works of art, photos, designs, letters, etc. are counted. The boom in this market is multibillion-dollar. So much so, that photos of rocks sell for over $1 million.

Consequently, this was recently highlighted by Coindesk news portal editor Ollie Leech during a recent interview on Yahoo Finance. In it, it highlights that Bitcoin could go back when the work of the DeFi and the NFTs becomes massive.

Although it did not affirm that ETH will surpass BTC, because the ETFs, of the second currency if approved in the US, will ratify it in its leadership.