Considering the fact that the crypto industry has been on a general bullish run recently, it is possible to assume that the value of Ethereum would break the $2000 level even before the end of the week.
The two leading cryptocurrencies, Bitcoin and Ethereum, have been on an incredible run since the beginning of the year with both assets reaching new all-time highs. Not only that, the assets have seen an increased interest by institutional investors who have kept pouring in millions of dollars into them, pushing the prices higher. For example, Ethereum has managed to climb closer to $2000 though this level hasn’t been reached.
To narrow this view, last week alone, Bitcoin, the leading cryptocurrency, saw investments of over $1 billion by Tesla Inc (NASDAQ: TSLA), the leading car maker, which pushed the value of the asset to a new high of over $48,000. Ethereum was also not left out, its value broke the $1,800 barrier for it to reach a new high of its own.
While both digital coins are currently undergoing some price corrections, it is safe to say that the values of these assets would still rise. The multi-million question, however, is if Ethereum is going to outperform its more popular counterpart? And if so, what could be the factors to push its surge?
How Ethereum Has Performed Previously
Last year, the crypto industry saw the value of its assets drop massively during the coronavirus pandemic, however, towards the end of the year, Bitcoin went on a run that culminated in it rising above the $20k mark. Since then, the asset has recorded a growth of over 133% between then and this period.
Ethereum, on the other hand, since its previous all-time high has had a growth of just 38% meaning the asset has a whole lot of work on its hand to match the run of Bitcoin. This might be made easier with the explosion of decentralized finance (DeFi) that depends on the Eth network plus the development of ETH 2.0 means that the second-largest crypto asset by market cap is shifting to a Proof-of-stake system that has recorded over $4 billion worth of ETH staked already.
Institutional Investors Interest in ETH
Institutional interest in Ethereum has soared lately. Grayscale Investments has reopened its Ethereum Trust to accredited private investors. This was made known through an announcement made by the firm on its official Twitter account where it stated that these investors could now make daily subscriptions.
As of 4 pm EST today, Grayscale Ethereum Trust resumed the private placement of its shares. The Trust’s private placement is offered on a periodic basis throughout the year and is now available to accredited investors for daily subscription. $ETH https://t.co/wcwbhDmtYj pic.twitter.com/4RZWiQWpJn
— Grayscale (@Grayscale) January 29, 2021
Apart from Grayscale, CME Group has also launched its Ethereum Futures Contract recently which coincides with when the asset witnessed a surge in its price. The launch of this futures contract fueled this run majorly with the managing director of the firm, Tim McCoury, highlighting the fact that the firm had recorded an impressive opening day on its platform.
When will Ethereum Hit $2000?
The volatility of the crypto industry is legendary as one can not accurately predict the next move of an asset. However, considering the fact that the crypto industry has been on a general bullish run recently, we can assume that the value of Ethereum would break the $2000 level before this week runs out.
Failure to do this in its present run might see it occur before the end of this month which can be linked to the interest of institutional investors and the market activities of investors in DeFi.
One undeniable thing is that the moment Ethereum eventually surges past the price, crypto enthusiasts would not be totally surprised as they have expected this for a while now.
Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.