On Monday, May 3, the price of the second-largest cryptocurrency by capitalization, Ethereum rose above $3000, setting a new price record. will the bullish trend continue?
May 3, 2021 | AtoZ Markets – Ethereum’s ETH token has eclipsed the psychologically significant $3,000 per token mark today. ETH price reached the milestone on several major exchanges, including Bybit, Coinbase, and BitMEX.
At the time of writing, the ETH/USD pair is changing hands at the $3,192 level.
ETH is now more valuable than the Bank of America
According to the latest data published by Coinmarketcap, the total market cap of ETH jumped above $350 billion today after a huge rally driven by retail and institutional investors.
The surge has helped Ethereum overtake institutions such as The Walt Disney Company and Bank of America in terms of total market cap.
By comparison, Bitcoin is presently sitting at a $1.079 trillion market cap, right below the total market cap of the precious metal silver at $1.416 trillion and above social media company Facebook at $923.12 billion.
Fundstrat: “Ethereum price could go up to $10,000 this year”
Meanwhile, the analytical company Fundstrat has predicted a further rise in the price of ETH to $10,000 this year against the background of the cryptocurrency reaching another all-time high above $3,000.
According to a research note published by market research firm Fundstrat, Ethereum will maintain a higher price action compared to Bitcoin and beyond.
In February, the price of Ether exceeded $2,000 for the first time.
“The market capitalization of Ethereum has grown in recent weeks and is approximately 30% of the capitalization of Bitcoin. Market focus is shifting from Bitcoin to Ethereum and other segments such as DeFi and Web 3.0 applications,” the analysts noted.
Fundstrat is optimistic about ETH as new financial applications are being developed on the Ethereum network, the scale of which has grown significantly over the past year.
The analyst firm’s report says:
“These apps generate three times more fees for the Ethereum network than Bitcoin, which has a market cap three times higher. This can be compared to a situation where a company uses the proceeds minus operating expenses and uses the resulting profits to repurchase shares. This means that the network will become profitable, similar to the company, when the reduction in ETH supply due to burnt commissions exceeds inflation.”
Fundstrat analysts also predict that the price of bitcoin will reach $100,000 this year, and the total capitalization of the cryptocurrency market will grow to $5 trillion.
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