The price of Ethereum (ETH) has surged above $2,000 to hit a new record all-time high. The price rally has resulted in pushing the second-largest cryptocurrency market capitalization to above $233 billion, according to data from CoinGecko. This also represents an increase of 172.5% year-to-date.
Ethereum Price Up by 30% Since Last ATH
The price of Ethereum (ETH) is currently up by 30% since touching an all-time high above $1,500 on February 2.
Ether’s price spikes and surging demand are behind various factors such as the rising demand for decentralized finance (DeFi), the launch of Ethereum 2.0 staking, and the newly formed institutionally focused ether market on the Chicago Mercantile Exchange (CME).
Besides, institutional and retail investment in Bitcoin has also helped in increasing the valuation of the crypto market. For instance, the valuation of Bitcoin has moved from $32,000 to its current price of $56,000,
The rise in decentralized finance (DeFi) mostly run on top of the Ethereum blockchain has also been booming. Data from DeFi Pulse, which has tracked 70 different Ethereum-based DeFi apps, measures the total value locked into those applications to be above $42 billion.
Large Scale Investors, ETH 2.0 Staking Behind Price Rise
Large-scale investors such as investment funds seem to be gaining some exposure to Ethereum. For instance, CME launched cash-settled Ethereum futures contracts for the digital asset on Feb. 8. The contracts surpassed $160 over billion in aggregated volume within the first week itself. CME is one of the oldest and most trusted exchanges in the U.S., the contract launch might indicate further growth in the institutional acceptance for Ether.
While staking on the newly launched Ethereum 2.0 network has also created a supply shortage and increased demand for the cryptocurrency. ETH 2.0 is an upgraded version of the Ethereum network based on a new consensus mechanism called proof-of-stake (PoS) and database sharding. Data suggests that around 2.7% of Ether worth $6 billion has been deposited on the ETH 2.0 blockchain. Those funds will be further locked roughly for the next 12 months.