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Ethereum continues to create new All-Time Highs after its recent move past the $4,800 mark. This comes with the total cryptocurrency hitting a record $ 3 trillion in valuation.
The cryptocurrency market continues to grow as investors (especially the corporate) put in more money in the assets. The rise of Ethereum isn’t a surprise as many analysts have been predicting it to happen.
Investors are now eying the $5,000 price as the next potential for the coin. This could be hit by the weekend if the price continues with its momentum.
Ethereum remains firmly the second largest crypto asset in the market. It comes after Bitcoin that is also achieving record price gains.
Huge Ether coin burns
The latest burn reports from Etherscan indicate Ethereum is accelerating the burning of coins after the implementation of the London Hard Fork Update.
It is the update that was done a few months ago on the network a few months ago to facilitate the reduction of coin supply in the long term. For the first since the burning was introduced, it has burnt more coins than those introduced in the market.
This is one of the factors triggering the market to rise. It is not yet clear how many coins will be burnt. However, investors are watching this keenly to inform their future market actions.
Technically, Ethereum has no supply cap like bitcoin. However, its developers believe that through burning, they will manage to balance the forces of demand and supply that are critical in the pricing of the coin.
Growth of NFT Market
Ethereum is the market leader in the development and deployment of NFT solutions. This has made it gain value as this market expands.
NFT marketplace continues to expand as demand for digital assets grows. The market leadership is giving the coin much-needed support helping grow its value.
As the market grows, so will the coin. Most investors are betting on this aspect to hold it for the long term. A key reason most analysts agree it could soon Hit the $10,000 value.
Challenges Facing Ethereum
Ethereum has its share of challenges. Although its value continues to grow. Some investors are skeptical its price will not be sustainable.
One of the major challenges is the high gas fees. The introduction of these fees has made it very expensive to transact in the coin making some of the investors stay away.
Competition is also rising with peer coins joining the market. Most of these are capitalizing on the challenges facing Ethereum to gain into its market. One such coin is Solana.
Some of the main areas competitors are focusing on are the NFT market and lower transaction fees. Ethereum dominance though continues to grow despite this competition.
Future of the Ethereum price
The latest bull run seems to be gaining pace as more investors come in to enjoy the rising prices. The majority of analysts believe Ethereum could do even better in the long term.
The rising inflation is also pushing investors to find safety in crypto. A huge amount of money is flowing into the leading crypto assets such as Ethereum and Bitcoin helping push their prices.