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Ethereum remains the leading altcoin in the market. It comes only second to bitcoin in popularity and market valuation. With a market value exceeding $450 billion, Ethereum continues to grow both in price and adoption.
The recent bullish movement in the crypto market seems to be catching up with Ethereum as well. For the last few months, its price had stagnated below the $4,000 mark.
However, this is changing as the price is maintaining confidently above the $4,000 mark for the last few days. This is near its all-time high of $4,305. A figure that most analysts believe could be broken soon.
To understand why this is possible, a deep dive into the market is necessary.
Growth in the NFT Market
Ethereum is the pioneer of the NFT concept using blockchain technology. A technology that continues to attract huge market interest with more cryptos joining the market as well.
It launched the first NFT project in 2015. NFT uses the Proof of Ownership concept to facilitate trading in digital assets. Today, millions of dollars are being traded daily.
Trading in digital assets is increasing as more people understand the market and its benefits. This growth has a direct effect on the price of Ether. An increase in a transaction helps create demand for ether assisting in growing its price.
As Ethereum moves towards getting to an all-time high, NFT will remain an important part of this growth.
The recent gains in the Price of Bitcoin
Both Ethereum and Bitcoin tend to correlate price movement. Most of the time, price movement in bitcoin results in a direct price movement of Ethereum.
Recently, bitcoin has got to an all-time high. This is shifting investors’ attention to a potential reciprocal by Ethereum.
Majority of investors who can’t afford the high prices of Bitcoin usually settle on the near coin that is Ethereum. Hence, there are high chances the ongoing bitcoin price gain is going to pull Ethereum along. This could potentially see the price of Ethereum get past the recent high recorded in May.
Ethereum undertook a major network update earlier this year referred to as the (London Hard Fork). The update focuses on changing key aspects of the network such as the mining model from the Proof of Work Concept to the Proof of Stake concept.
This will help change from the traditional mining process to a new staking process. There has been resistance to the mining process as it requires huge amounts of power some of which come from unclean sources.
By changing to staking, this need for huge amounts of power will be eliminated helping make the coin more acceptable.
The update also focuses on strategically reducing the number of coins in supply and helping boost its price. This is commonly known as burning in the crypto world.
As the updates take effect, its is likely to grow towards the end of the year.
All these factors will be key in pushing its price to an all-time high. The market is very bullish currently and the majority of investors are betting on Ethereum to do well.
Recent price actions indicate the price is already rising. For the last few days, it has consistently remained above the $4,000 mark. This is an indicator that the coin could be preparing for a huge rally soon.