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The Ethereum ecosystem has significantly benefited from the booming decentralized finance industry.
Ethereum (ETH) market price has jumped over 13% in the past 24 hours to hit its all-time high (ATH) set back during the 2017/2018 bull run. Ethereum market price rallied to slightly above $1435 but had retraced to trade around $1,406.55 at the time of writing according to metrics provided by CoinGecko.
Consequently, Ethereum’s market capitalization had topped $161.57 billion with a trading volume of approximately $44.79 billion. The second crypto asset by market capitalization and largest altcoin now has officially made a new all-time high and awaits to make it support instead of a resistance level.
A Closer Look at Ethereum and Its Ecosystem amid New ATH
The asset is closely following the footsteps previously made by bitcoin before surpassing its all-time high. The Ethereum ecosystem has experienced a sharp uptick in blockchain activity, bolstered by the huge institutional and retail demand. Apparently, the Ethereum ecosystem settles 28% more transactions daily than the Bitcoin ecosystem.
“Ethereum’s daily transaction volume is going parabolic. It now settles $12 billion in transactions daily – $3 billion more than Bitcoin. Imagine not being bullish,” asserted Ryan Watkins, a researcher at Messari, a data aggregation portal.
However, the high transaction fees have choked a significant amount of volume from small retail traders.
Ethereum developers are working on implementing Eth 2.0 that supports proof of stake away from the energy-consuming proof of work. With phase 0 already up and running, investors are optimistic the high transaction issue will be solved and allow the scalability of the system.
Notably, the Ethereum ecosystem has significantly benefited from the booming decentralized finance industry. Most of the Defi projects are supported by the Ethereum blockchain despite of the growing competition from the Binance Smart Chain. Metrics provided by Defi pulse indicate the DeFi ecosystem has surged tremendously since January 2020. The total value locked in the entire defi ecosystem stands at approximately $25.2 billion.
Ethereum market price continues benefiting from the depreciating supply and increasing demand. Notably, with the introduction of staking, a significant amount of Ethereum units have been locked to facilitate the system. At the time of writing, there are approximately 114,315,516 in circulating supply.
Similar volatility has been experienced in other top-ranked altcoins including Litecoin and Bitcoin Cash. However, Bitcoin remains trapped in a consolidation mode, whereby its down approximately 1% in the past 24-hours.
Ethereum market price remains highly undervalued, whereby both analysts and investors remain optimistic the rally will be enormous by the end of the year.