Ether reached new highs on Monday, thanks to a faster token burn rate and a fresh infusion of new money into the market, which propelled bitcoin to its latest all-time high, putting the overall worth of the cryptocurrency market to $3 trillion for the first time.
By 06:40 a.m., bitcoin had increased 6.5 percent in the previous 24 hours to around $65,884, while ether had risen 2.9 percent, having risen earlier by as much as 4.6 percent to a high of $4,762 on Coinbase.
According to Freddie Evans, Sales Trader at UK-based digital asset broker GlobalBlock, the spike in ether has been fueled by the network’s high token burn rate, with 800,000 ether destroyed in the last three months.
“The price of ether is increasing with help from the continuing burning reducing supply and anticipation for eths move to proof of stake in the new year moving ether to a far less energy-intensive system expected to reduce ethereum’s energy usage by 99%,” Evans said.
The coin could have been spurred by the momentum generated by the introduction of an ether-backed exchange traded fund. Bloomberg experts projected last week that the first exchange traded fund based on ethereum futures would launch in the first quarter of 2022.
Bakkt, a digital asset manager, also told Insider Saturday that before the end of the year, its clients would be able to buy, hold, and sell ether through its app.
Ether, the second most valuable coin by market capitalization after bitcoin, has increased by 36% in the last month, primarily to the growing popularity of applications such as non-fungible tokens and the growth of the metaverse, while bitcoin has increased by 24%.
Evans stated that more purchasers have been entering the market, which has helped to improve the overall market. Last week, Coinbase, one of the main exchanges, was the most downloaded app in the United States.
“We expect movements like we see now during a bull run; with global interest in crypto seeming to expand exponentially, prices have responded accordingly,” Evans said.
With ether and bitcoin trading around record highs, the overall market value has now surpassed $3 trillion for the first time, roughly the amount of the entire UK economy.
Community has always been an important element of the cryptocurrency world, and Tyler and Cameron Winklevoss, co-founders of the cryptocurrency exchange Gemini, chimed in when prices rose on Monday. Evans stated that he believed this contributed to bitcoin’s rising trend.