For those wondering, ‘Why is ether or ETH rising?’, here are some clues.
Called by someone as the ‘oil of crypto’, Ethereum today crossed the $3400 mark. Only sometime back it was valued ten times less. The recent rise has left many people puzzled. There is obviously more demand for ETH, whose London fork will be coming soon with several changes. One source called the recent rise of ether as the crossing of the Rubicon (point of no return) into the mainstream. This means ether is now considered a mainstream investment.
Today’s rise has been attributed to a number of factors, the uppermost being the trend of building DeFi apps. These smart contract-driven app deploy the unique feature of Ethereum where anyone can code an app and run it on the blockchain, unlike bitcoin. DeFi has been a rage since last year, with every new project claiming boldly their new revolutionary idea. The total value locked in these projects is above $100 billion.
A technical reason is the approaching of the London fork, after which gas prices will reduce, and some fee in ether will be burnt, thus reducing the supply.
Another factor quoted is the pouring in of new money that is driving the prices up. This is being done by hedge funds and institutional investors. The tremendous rise in ether’s value has obviously made it a star attraction, though its complex crypto nature is yet to be fully understood.
Ether is the second most valuable crypto after bitcoin. Like a dark horse, it has eclipsed the rise of bitcoin over the last few months. Yet another of its flaming trends is that of NFTs.
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