Though Ethereum alone bears the glory with this current milestone, many factors work synergistically to help the coin attain the record ATH.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization has beaten its own all-time high price record above $1,450 in the early hours of January 25 according to CoinMarketCap. Per the data aggregator, the price of Ethereum surged to $1,467.78 beating the earlier record of $1,439.33 set last week.
The journey to set this significant price record for Ethereum has been a long haul since the coin was created more than 5 years ago. Since its inception, the coin has grown in relevance both as a means of transactions and as the backbone of most Decentralized Finance (DeFi) applications.
About 5 years ago, Ethereum (ETH) hit its all-time low price of $0.4209, about 336825.13% from the coin’s present value and its price is also potentially prone to the frequent price volatilities obtainable in the entire cryptocurrency ecosystem. At the time of writing, ETH has grown by 7.47% in the past 24 hours and currently trading at $1,420.99. A complementary bullish run has been recorded in the past month and week at 127.5% and 15.9% percentage growth rates respectively.
Though Ethereum alone bears the glory with this current milestone, many factors work synergistically to help the coin attain the record ATH.
Bitcoin Influence on Price Growth of Ethereum (ETH)
The rallies seen in the top digital currencies as noted earlier have been complementary especially in relation to the price movement of Bitcoin (BTC). Bitcoin has stood as the beacon of reference for the global digital currency market as it has surged more than twice to hit an ATH price above $42,000.
The Bitcoin price rally is mostly attributed to the massive buy-up of the coin by institutional investors including MicroStrategy Incorporated (NASDAQ: MSTR), and Paypal Holdings Inc (NASDAQ: PYPL) amongst others. This huge embrace helped push up the price of Bitcoin, and at a time, obtaining one whole Bitcoin became quite expensive for the retail investors.
This single factor pushed many people to Ethereum, the next best alternative, and the retail rally in price is a very visible factor in pushing the coin to its new heights.
DeFi and Ethereum 2.0 Factor
The Ethereum network is also the major infrastructure upon which many DeFi tokens such as Aave, and Stablecoins such as Tether (USDT) are built. This increases the relevance of the network as the continuous embrace of these platforms directly involves the use of Ethereum as transaction fees, a factor further increasing the relevance of the Ethereum token.
The Ethereum network in its bid to push its scalability and throughput to new levels has launched the Beacon Chain of its proposed Proof-of-Stake (PoS) algorithm. The Beacon chain is the first step in the eventual migration and when the network is fully operating with PoS, more DeFi rollout will be supported, accompanied by a reduction in the network fees owing to the elimination of network congestion.
Apparently, these future prospects of the Ethereum (ETH) and its broader network are further attracting more investors to take a position with the coin.
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