As a seasoned researcher with over two decades of experience in financial markets and technology, I have witnessed the evolution of the financial landscape from traditional institutions to decentralized networks. The recent surge of Ethereum (ETH) to its highest since August, surpassing even the market cap of established players like Bank of America, is a testament to this shift.
On November 10th, Ethereum, currently the second-largest digital currency by market value, reached a peak of $3200 – its highest since August. This surge came after Bitcoin exceeded $79,000, following Donald Trump’s victory in the U.S presidential election.
As reported by CoinMarketCap, the current market value of Ether (ETH) is approximately $383 billion, representing a nearly 5% increase within the past 24 hours. This places Ether’s market capitalization around $40 billion higher than Bank of America’s market cap.
The lofty value of Ethereum relative to Bank of America indicates a transition in the financial market’s mechanics, as the expansion and acceptance of blockchain technology surpasses that of conventional finance (TradFi).
The change indicates a growing preference for Decentralized Finance (DeFi) and cryptocurrency assets, as the United States Securities and Exchange Commission is contemplating the introduction of the first options based on Ethereum (ETH) exchange-traded funds (ETFs) to the market.
ETH gains momentum, turns inflationary again
In simple terms, Ethereum (ETH) has seen its most significant price movement in a week since May, following Bitcoin’s (BTC) relentless advance towards unprecedented new record highs (peak prices).
Over the past week, there’s been a significant rise in the Ethereum (ETH) supply, with an annual inflation rate of approximately 0.424%. Interestingly, it was previously experiencing deflation from early to mid-October.
Based on information from Ultrasound.money, the current yearly burn rate for ETH stands at approximately 452,000 ETH. However, the issuance rate is over twice that amount, at 957,000 ETH. This means that the total supply of ETH increases by about 0.42% annually.
Community analysis
Among cryptocurrency experts analyzing X, there’s a blend of opinions but a common sense of eagerness for future price increases, with many forecasting a new all-time high (ATH) approaching soon.
One X user posted their expectation that ETH is set to break the $4,000 barrier, stating that ETH “will most likely breeze through $4k.”
According to analyst Poseidon’s recent post, there seems to be a similar path for cryptocurrency X, followed by a short-term dip before hitting a new all-time high (ATH). Moreover, he predicts that the price of Ether (ETH) will surpass the $4,300 milestone.
Vitalik introduces “info finance”
On November 9th, Vitalik Buterin, one of Ethereum‘s co-creators, unveiled a new idea he called “information finance.
In simpler terms, Vitalik Buterin described information economics as a field that starts with a specific piece of data you’re interested in, and then develops mechanisms to effectively extract that information from market participants, aiming for optimal results.
The founder of Ethereum champions the use of forecasting markets as a means to gather input from the community regarding upcoming events, providing an unbiased public perspective rather than one tainted by media hype or manipulation.
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2024-11-10 13:34