A $700 investment in Ethereum in November 2020 would have turned into more than $4000 now.
Ethereum, the second-largest cryptocurrency in the world has seen a major pump in the last few days. Ethereum was trading at around USD 2,700 on Binance at the starting of May 2021, but now it has seen a pump of around 54% which pushed its price to a new all-time high of $4,196.63 at 12:15 P.M. ET.
The total market cap of Ethereum is now around $476,324.30M. Just to give you a basic idea, the total market cap of Bitcoin is around $1,056,986.54M. The recent positive pump in Ethereum can be credited to its smart contracts and decentralized application platforms.
Ethereum blockchain is the basic entity on which DeFi and NFTs run. DeFi facilitates crypto-denominated lending outside traditional banking. Moreover, one more reason for this boost is the upcoming technical change in its software which is seen as reducing its supplies, and therefore the prices are booming.
The entire crypto market is around $2.5 trillion. Ethereum was mostly seen under the shadow of Bitcoin but the recent positive parabolic curves in Ethereum’s growth show that investors are now open to altcoins other than Bitcoin. For instance, Bitcoin fell around 2-2.5% in April whereas Ether saw a rise of around 40%.
Impact on Altcoins
The impact on Altcoins of this rise is pretty obvious. In the past too, we have seen that when Ethereum rises, the altcoins have shown a positive run too. And the same happened in the case of many altcoins.
Many Chinese coins like Nuls and Tomo also saw a huge surge. In this bull season when first Bitcoin gave a huge upside, and then Ethereum, it’s now turning for altcoins as considered by crypto experts.
One major hindrance in this altcoin rally is the wide circulation of meme coins like Dogecoin and Shiba Inu coin.
As of May 12, 2021, it is trading at around $4300 on Binance with a market cap of $477,8500M.
The day and week change all are in a positive outlook. Currently, it is slightly less than the market capitalization of Bitcoin, but with a small pump, it can cross the half market cap of Bitcoin too.