Ether, the native coin of the Ethereum blockchain, had an intense week as Ethereum’s London hardfork went on successfully. In just five days, Ether’s price climbed from below $2,500 to almost $3,200, and its market capitalization surged to $365 billion.
The Bull Market Could be Back
The second-largest digital currency has not touched this level since the end of May. On Monday, Ether’s price was down 7.6% to $2,930. Bitcoin gained over 3% percent to $45,328 on Sunday, its highest level since mid-May, while other tokens like Dogecoin, Binance Coin, Cardano, and XRP have also rallied in the past week.
The entire crypto industry is thrilled about the recent Ethereum network upgrade. Experts believe that the development will positively impact investors as it may bring transparency in transaction fees on the network.
Lex Sokolin, global fintech co-head and head economist at blockchain company ConsenSys, said that ethereum could support more complex computational use cases like social networks, marketplaces, and various creative tribes with more scalability. The price of Ether will be upraised to the long term, thus building up investor sentiment around the world’s second-biggest crypto.
With the new upgrade, users will not use the earlier auction system again for ether coins and will now pay a base fee. The network will automatically set that fee based on how busy it is rather than users submitting bids. They will also pay a miner a “tip” for fast transaction processing.
A Green Cryptocurrency
Recently, the second-largest digital currency attained a two-month high, and analysts remain optimistic about Ether’s long-term prospects. Ether’s gains for the year surged to 280%, well ahead of Bitcoin’s 40% advance in the same period after crashing from a record of almost $65,000 earlier this year.
Ethereum founder Vitalik Buterin said that the software upgrade also shows the Ethereum network is in an excellent position to make more adjustments that will reduce its energy use substantially.
Jehan Chu, the managing partner at Hong Kong-based crypto investment firm Kenetic Capital, believes that Ether could reach a new all-time high by the year-end and rally to $10,000 or more in a couple of months.
Bullish Fundamentals
Cryptocurrencies are gaining momentum again after drawbacks, notably from record highs in recent months. The stumbling block followed the growing concerns about China’s crackdown and Elon Musk’s questions about Bitcoin’s energy usage.
The US infrastructure bill is making its way through Congress, and dueling amendments that address reporting requirements for cryptocurrency transactions and tax collection has created a lot of uncertainty.
However, the issue has not halted the momentum in cryptocurrencies. According to CoinGecko, cryptos’ market value has rallied back to over $1.8 trillion from a mid-June low of about $1.2trillion.
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