Ethereum is the largest smart contract ecosystem that could potentially continue its bull run. As of Monday, it has managed to overcome the $3,300 benchmark, which has been hovering above the cryptocurrency for a while now. After recording its all-time high value above the figure of $3300, the coin also saw a huge increase in its market cap as well. The market cap of the world’s second-largest digital currency touched the mark of $382 billion for the first time in its entire history.
With this market cap, it was able to surpass Bank of America (BoA) for the first time. The market capitalization of Bank of America stands at the figure of $351 billion, which is less than that of Ethereum’s market cap, as per the data from Asset Dash.
The recent spike for Ethereum helped the cryptocurrency overtake prominent names of the industry like the BOA and Walt Disney in terms of market cap. Infinite Market cap, a market capitalization tracking website, reports that Ethereum grew 24%, reaching $346.7 billion. However, the elder brother of Ethereum, BTC, is currently sitting just above Facebook ($923 billion) and below the valuable metal Silver ($1.416 trillion) with $1.079 trillion market capitalization.
The impressive run by the cryptocurrency has even led some to speculate that Bitcoin could be overtaken by Ethereum as the biggest cryptocurrency in the world.
Many factors have contributed to the current bullish run by Ethereum. As the number of users and institutions presently using Ethereum’s blockchain has shot up significantly. Just recently, the EIB has released a statement of it issuing a 2-year digital bond worth reaching a massive $121 million. The entities involved with the EIB consist of some of the juggernauts of the banking sector with the likes of Goldman Sachs, Santander, and many more. The interest by the retail industry in DeFi has been on the rise, with value locked closing the highs more than $100 billion.
Investors are anticipating the London upgrade since it will include the latest overhaul of the fee structure for Ethereum. Moreover, the looming possibility of Ethereum 2.0 represents the cherry on top for an already appealing prospectus for the investors. The upgrades would lower the fee and the reward for ETH for miners, which will ultimately reduce the sell-side strain on the cryptocurrency.
Bankless, an Ethereum informational media company’s host David Hoffman considered many initiatives similar to the halving occurrence, as it is thought of to weigh in BTC price appreciation.
Nevertheless, ETH does have other competition in terms of smart-contract permitted chains. Even though the recognition of ETH is growing, it increases the transaction fee on the blockchain even after being subsidized. Adding the lack of a layer-2 scaling option, the appeal for Ethereum subsequently grows.