What is driving the Ethereum rally?

ether (ETH) hit a new all-time high of $ 4,138.46 in the early hours of Monday as the rise of the second largest cryptocurrency by market capitalization continued unabated.

See also: How to Buy Ethereum (ETH)

What happened: The cryptocurrency, co-developed by Vitalik Buterin, was trading 3.54% higher at $ 4,114.19 at press time.

In comparison, the Apex cryptocurrency Bitcoin (BTC), was trading 0.68% higher at $ 58,820.05 at press time.

On Monday, the CEO of on-chain analytics firm CryptoQuant, Ki Young Ju, said US-based institutional investors were behind ETH’s parabolic movement.

Q: What is behind this parabolic movement of $ ETH?

A: US (institutional) investors. https://t.co/4CvbSrF4tt pic.twitter.com/S24Dty4b0i

– Ki Young Ju (@ki_young_ju) May 10, 2021

Ki pointed out an “insane” Ethereum Coinbase bonus in a tweet.

“Sale [ETH] now doesn’t seem like a good idea in the long run. Follow US institutional investors, not against them, ”said the analyst.

Still an insane $ ETH Coinbase reward.

Selling $ ETH doesn’t seem like a good idea in the long run. Follow US institutional investors, not against them. https://t.co/mZcGk6Gvrs pic.twitter.com/IX8cVP1ppY

– Ki Young Ju (@ki_young_ju) May 8, 2021

Previously, he said that US institutional investors are buying ETH through the exchange operated by exchange Coinbase Global Inc (NASDAQ: COIN).

Why it matters: Andy Swan, co-founder of LikeFolio, said on Sunday that there was a flow of. have given Dogecoin (DOGE) to ETH, which he described as “insane”.

DOGE fell up to 30% hours later Tesla Inc (NASDAQ: TSLA) CEO Elon Musk hosted “Saturday Night Live,” despite mentioning the meme coin several times during his appearance. At press time, DOGE was trading 7.89% higher at $ 0.55.

See Also: Can Ethereum Reach $ 5,000 In Six Weeks? So one important metric suggests

Another boost for ETH came thanks to the decentralized finance or DeFi arena. Mark Cuban called Ethereum a platform for smart contracts and said that as long as it can implement its “functional and performance improvements”, it will continue to expand the applications developed for it.

Non-fungible tokens or NFTs are another driver for Ethereum, in which Buterin sees more potential than simply becoming a “casino” for already wealthy celebrities.

Photo by Stanley Osorio on Flickr

Comments are closed.