Welcome back to the Tribe! In this post we take a look at the recent Ether Bull Run!
Nothing should be considered investment or financial advice. Enjoy the ride!
Ether Bull Run
Ether, the world’s second-largest cryptocurrency after Bitcoin, reaches new heights as the coin briefly crossed $4,700 early Monday (November 8, 2021).
According to Coin Metrics data, the native cryptocurrency of Ethereum touched briefly $4,740 less than two weeks after it topped $4,400 for the first time Oct. 28.
Meanwhile, Bitcoin seemed to improve its record high of $66,975 witnessed on Oct. 20, ending a nearly three-week cycle of persistent trading around $60,000.
The week began on a positive note, with Ethereum witnessing more than 4% gain in 24 hours Monday, while bitcoin soaring 7% to a price of $66,250 with expectations to make November the record-high for the top cryptocurrency in the world.
Ether has gained 57% since the start of October, while bitcoin swelled about 50% amid mixed feelings of joy and suspicion by the experts. Digital currencies are volatile and known for such dramatic price swings, and a 20% gain or loss overnight is considered ‘normal’.
Why The Bullish Trends?
The new heights and glories Ethereum has seen include a whopping gain of over 800% year-over-year from $567 in Nov. 2020 to $4757 this Monday.
However, bitcoin’s gain during the same period from around $18,000 to $66,975 has undoubtedly grabbed all the limelight in the crypto world.
According to Mikkel Morch, executive director at crypto hedge fund ARK36, bitcoin will soon touch the $70,000 mark.
No one is sure what is snowballing, but the cryptocurrencies have been swelling unprecedently during the last year.
Yuya Hasegawa, a Japan-based crypto market analyst, believes the digital currencies are gaining as “real yields sliding due to inflation fears.”
Another analyst, Kyle Rodda, says inflation and falling production have drawn traders’ attention to buying gold and cryptocurrency assets as they don’t pay a coupon.
Rodda added that the growing interest among financial institutions and lack of enforcement by the regulators have also been contributing to the bullish trends in cryptocurrency lately.
In fact, recent trends have shown growing political and administrative support for virtual currency.
Recently, New York Mayor-elect Eric Adams echoed the stance of Miami’s mayor, saying he would make his city the “center of the cryptocurrency industry.”
What American politicians are seeking to do in their respective areas, Australian financial sectors are trying to do in theirs. In recent weeks, Australia’s largest bank announced to initiate crypto trading to retail customers.
Ether Price
To date, Bitcoin is the world’s largest digital currency by market capitalization, but many analysts believe the rapid progress of ether could outpace the reigning cryptocurrency that was invented in 2008 by an unknown person or group of persons.
As of Sunday night, ether’s market cap ($554.5 billion) is still half of bitcoin’s $1.226 trillion. But the trend and technology seem to favor ether in the long run as it gained 31% over the past month and 535% during this year.
While adapting to the new situations faster than the others, Ethereum has embarked on a new trend in the crypto world – DeFi or decentralized finance. It’s a blockchain-based type of finance that bypasses central financial intermediaries used in banking or regulation.
Another reason for the continuous rise of ether is because non-fungible tokens (NFTs) that are like digital receipts that keep a record of ownership for items such as online art. NFTs have witnessed a boom in activity with a token selling for a record $69 million at Christie’s this March.
Will Ether Replace Bitcoin in 2022?
Nothing is certain in this world and even less certain when it comes to cryptocurrencies – the most unpredictable phenomenon in this century.
But Ethereum is doing fine, enough to define new realities in the crypto market.
The digital currency, conceived in 2013 by a Russian-Canadian programmer, has recently witnessed a significant upgrade to become faster and environment-friendly. This is the area where bitcoin has probably drawn the biggest chunk of criticism from its detractors.
While bitcoin and many other cryptocurrencies continue to use massive consumption of energy, Ethereum launched an up-gradation last month called Altair. By next year, Ethereum intends to completely switch to a Proof of Stake (PoS) model – a more environment-friendly alternative to the existing Proof of Work (PoW) mechanism.
Ethereum, which is currently using both, plans to a PoS model entirely in 2022. The second-largest cryptocurrency intends to merge with the Beacon Chain – a brand new PoS blockchain – that will support the new Ethereum 2.0 system.
This development, besides many others, has probably led many crypto experts to forecast the brightest future for Ethereum.
Rahul Rai, a crypto hedge-fund manager, is perhaps more ambitious as he believes Ether could overtake bitcoin as the top cryptocurrency around the middle of the next year.
Ether Bull Run Post
Thanks for reading our post on the Ether bull run. Do you think Ether will out pace Bitcoin in 2022, or do you think the grandfather of crypto will continue to hold it’s place?
Cheers
