Ethereum (ETH) Surges to 20-Month High as Market Cap Reaches $270 Billion
Ethereum (ETH) has experienced a steady increase in value since mid-October, and it recently surpassed the $2,200 mark for the first time since the Terra collapse in May of last year. At the time of writing, ETH is up by 3.8% in the past 24 hours and is trading at around $2,250, reaching a 20-month high. The asset’s market cap has risen to $270 billion with a market dominance of 17.3%.
Increased Trading Volume and Wallet Activity
Alongside the price surge, Ethereum’s 24-hour trading volume has seen a significant increase, surpassing $11 billion. Data from Santiment reveals that the number of wallets holding between 0.1 and 1 ETH has reached a 14-week high of 3.35 million, while the number of whale wallets consisting of between 100 and 1,000 ETH has been steadily declining since March.
Rising Open Interest and Whale Activity
Furthermore, Santiment data shows that Ethereum’s total open interest (OI) has been consistently rising since November 26th. Additionally, as the price of ETH increased, whale activity surged with a 4.3% rise in transactions consisting of at least $100,000 worth of ETH over the past 24 hours.
Deflationary Supply and Future Upgrades
The recent bullish momentum in Ethereum can be attributed to its supply becoming deflationary due to a decrease in validator participation. This has caused a slower token issuance rate. Ethereum co-founder Vitalik Buterin has acknowledged the network’s staking and decentralization issues but expects them to be addressed in the upcoming Dencun upgrade.
Hot Take: Ethereum Continues to Rise Amidst Optimism
Ethereum’s impressive surge to a 20-month high demonstrates the growing optimism and investor interest in the cryptocurrency. With its market cap reaching $270 billion and increased trading volume, Ethereum is attracting attention from both individual wallet holders and institutional investors. The ongoing rise in whale activity further adds to the positive sentiment surrounding ETH. As Ethereum addresses its network issues and implements upgrades, such as the forthcoming Dencun upgrade, it is well-positioned for continued growth and adoption in the crypto market.
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