By
Chimamanda U. Martha
April 25th, 2024
Prior to Wednesday’s Ethereum (ETH) price pump, several underlying factors had accumulated in favor of the asset.
Ethereum (ETH) price jumped to new heights early Wednesday to trade slightly above $2,700, thus recording a new all-time high. Meanwhile, Ethereum price has moderated the pump and was trading around $2,592.79, up 2.61% in the past 24 hours according to market data provided by CoinMarketCap. Notably, Ethereum exchanged hands as high as $2,713.58 setting its highest price since inception.
Ethereum (ETH) market capitalization was around $299.5 billion at the time of reporting according to CoinGecko. Besides, its average daily traded volume was around $31.5 billion.
Ethereum (ETH) price has now added approximately 53%, 12.3%, and 11.3% in the past 30-days, 14-days, and one week respectively according to CoinGecko. Additionally, the asset is up over 1200% in the past year, thanks to several underlying factors both technical and fundamentals.
Underlying Factors Influencing Ethereum (ETH) Price
Prior to Wednesday’s Ethereum (ETH) price pump, several underlying factors had accumulated in favor of the asset. Fundamentally, Ethereum as the second-largest digital asset by market capitalization received notable spotlight from the cryptocurrency industry.
Notably, Ethereum played a significant role in the past year bull market. Ethereum blockchain is a hub to most of the huge decentralized financial platforms including Uniswap and SushiSwap among others. Moreover, the ETH ecosystem has played a significant role in the non-fungible tokens market (NFT) that saw a huge boom at the beginning of the year.
However, as an ecosystem, it has been met by huge resistance due to its low throughput and high transaction fees. Other projects that offer smart contract services including Binance Smart Chain, Tron Foundation among others have scaled as a better option among developers.
In a bid to solve these challenges, Ethereum developers are working round the clock to upgrade the ecosystem in order to meet the huge global demand.
Institutional investors have proliferated in the cryptocurrency industry particularly the decentralized lending industry. According to the latest daily update by Grayscale on its assets under management, Grayscale Ethereum Trust is mostly funded by institutional investors totaled approximately $8.15 billion.
In a bid to help the Ethereum ecosystem scale and keep up with the growing competition, the developers recently upgraded the blockchain during the ‘Berlin’ upgrade. Consequently, Ethereum transaction fees have dropped to manageable levels.
Further, the developers are working on rolling out the ETH 2.0 that will use the Beacon chain. Since the launch of phase 0 late last year, the ecosystem has recorded a huge interest in validators to enable the proof of stake concept.
As of April 22, 2022, the total number of validators on the Ethereum proof of stake totaled to over 122k, with over 4 million ETH already staked.
The illustrations were provided by Depositphotos.com