Ethereum (ETH), the second largest digital asset by market cap, surpassed $2,000 and set a new record of $2,042 on February 20. At the time of writing, ETH/USD is trading at $2,000. Over the past 24 hours, the growth was more than 5%, and since the beginning of the year, more than 200%. Ethereum’s market capitalization has surpassed $230 bln and the average daily trading volume has crossed the $40 bln threshold.
The growth of the second largest digital asset is driven by a number of positive fundamentals, including the successful launch of ETH futures on CME, as well as an increase in institutional interest. Analysts at Fundstrat Global Advisors LLC are confident that ETH is on the verge of a massive bullish trend that will eventually push the token price above $10,000. The report points out that the booming decentralized finance (DeFi) industry will drive sustainable growth for ETH as the vast majority of DeFi projects are built on the Ethereum blockchain.
In addition, the emerging non-fungible token (NFT) industry is also driving the growth of ETH. The total transaction value in the NFT sector has grown by almost 300% in 2020 and this trend continues. The industry will be the main engine of the virtual economy in 2021, according to research by NonFungible.com and L’Atelier BNP Paribas.
Image: Finance Magnets
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