Over the past week, Bitcoin struggled to recover to the highs, while Ether was trading around $ 3,400 and continues to rise.
Many people predict that Ether can “overtake” Bitcoin to become the largest cryptocurrency in the world. Recently, JPMorgan Bank also gave the view that Ethereum can go better than Bitcoin and evaluate Ethereum as “the backbone of the cryptocurrency economy”.
Infinite Market Cap estimates Ethereum’s total market cap has surpassed Walt Disney and Bank of America, to $ 388.82 billion.
Coin Telegraph cites many of the reasons behind the rise of Ethereum. Last week, the European Investment Bank (EIB) in conjunction with institutions like Goldman Sachs announced the issuance of a $ 121 million e-bond on the Ethereum network. Allows companies to use Ether to buy 2-year bonds.
In addition, Ethereum’s blockchain is also the foundation for the NFT (irreplaceable token) fever for buying and selling digital art, as well as the DeFi (decentralized finance) movement. Therefore, the higher the transaction activity related to these two trends, the more valuable the Ether adds.
The next Ethereum update taking place in July is what investors have come to expect, heading towards the ETH 2.0 phase. The Ethereum network upgrade version will move from a Proof of Work (PoW) algorithm to a Proof of Stake (PoS) consensus algorithm, with new features that promise to reduce transaction fees and reduce the number of Ether rewarded for miners. .
Coin Telegraph quoted David Hoffman – a member of the Bankless company, comparing Ethereum updates to Bitcoin’s “halving” every four years. Then the Bitcoin reward will be halved for the miners but at the same time cause the price of Bitcoin to increase sharply.
According to Bloomberg, Vijay Ayyar – head of exchange Luno Pte in Asia – Pacific region predicts Ether will reach between 5,000 and 10,000 USD at the beginning of next year. Any rally, he stressed, needs to be corrected, but Ethereum’s long-term outlook is “very healthy”. There are many investors predicting Ether will hit $ 10,000 by the end of the year.