Ethereum, the second-largest digital currency, just reached an all-time high of $3,547 on Wednesday before slightly dipping to $3,432 as of writing. Nonetheless, ETH’s price surge exceeded 350% this year, signifying the coin’s bullish state.
This comes at a time when many other cryptocurrencies like Bitcoin and XRP have received massive gains after reaching their respective ATHs.
For instance, Bitcoin topped at $63,300 last April 16, and XRP reached an all-time high of $1.81 a day before BTC’s ATH. Many analysts consider this solid proof that the prices of the top cryptos are directly linked to each other, albeit in varying degrees.
As of writing, 1 ETH is equivalent to $3,327 and is expected to soar higher in the coming days.
Ethereum vs. Bitcoin
Bitcoin’s popularity is mainly due to its store of value feature, which hedges against inflation. Meanwhile, ETH has a slightly different purpose as it serves as a Blockchain platform for developing smart contracts and furthering decentralized finance DeFi.
These use cases of Ethereum play a huge part in its continuous price growth.
Even the European Investment Bank (EIB) remains one of the strongest institutional supporters of the coin as it issued its first digital bond using Ethereum. Meanwhile, Bitcoin also received solid backing from tech and finance companies like PayPal and Visa. The two companies introduced new features that support crypto payments and exchange.
These show that the two cryptocurrencies are connected to each other, especially that they are two of the biggest digital coins in terms of market share. It can then be expected that their price movements will also be slightly similar to one another due to their similarities and public perception.
Speeding Adoption to Mainstream Finance
The S&P Dow Jones Indices have just launched the Ethereum, Bitcoin, and Crypto Mega Cap Indices to help measure their digital assets’ performance, a huge step towards the mainstream adoption of cryptocurrencies as it brings digital coins deeper into the fiat industry.
Furthermore, the company added that more digital coins would be included later this year as a step towards speeding up cryptos’ adoption rate.
Unraveling Binance CEO CZ's Thoughts on ETH Surge
Binance CEO Changpeng Zhao said in a recent statement that cryptos like Bitcoin and Ethereum would co-exist along with other altcoins as more people are becoming more comfortable in diversifying their digital portfolios.
Zhao also implied that crypto is the future after he said in a Bloomberg TV interview that digital coins offer better freedom of use.
He further added that there are two kinds of cryptocurrencies. The first ones are those like Bitcoin, Ethereum, and XRP, while the second type is the central-bank coins.
Zhao said that the main difference between the two is that people will find the latter unattractive due to the level of control attached to them.
When asked about his thoughts regarding ETH’s recent ATH, Zhao responded that Ethereum’s non-fungible tokens are the main driving force to its continuous price increase.