Ethereum seems to create a new image for Bitcoin as a currency and collateral

  • Last week Bitcoin, recorded a new all-time high near $24,000
  • Ethereum seems to have the potential of legitimizing crypto tokens
  • In the recent price rally of the leading cryptocurrency investors have played a vital role
  • It seems like Ethereum is up for bringing something strong and innovative

In recent days of the month, the entire crypto community is witnessing how the bulls are raging the price of Bitcoin. Last week, the leading crypto token successfully recorded a new all-time high at the level of near $24,000. The biggest question is stuck in the industry for how the prices are driving higher. According to Bill Noble, the Chief Technical Analyst at Token Metrics, the key drivers are the institutions in the current scenario. In an interview, Noble mentioned that the price of BTC is being driven by institutional investors, as they are getting in the industry observing other institutional players.

Institutions are showing great interest in the crypto market

Recently, data from Bitcoin Treasuries revealed how several institutions are going crazy to enter the market. Started by institutions like MicroStrategy and Square Inc., several other investors have also invested in Bitcoins. Not only such investors have invested but also are increasing their holdings over time. Observing the data, we found that all the firms who recently entered the industry are holding 9,53,190 BTC. However, it is also observed that, apart from the investments from several firms, MicroStrategy is in the top position in respect of holdings. Indeed, the leading firm has held over 40,000 BTC, and as the amount has surged, it can buy almost 34,500 BTC.

Ethereum as the one with the possible potential 

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As institutional investors are actively participating in Bitcoin, several are regarding Ethereum as the one with potential. It is observed that the price of Ethereum has also surged recently. Though with the high value, Ethereum also has a DeFi ecosystem surrounding it. Many consider that the boom of decentralized finance has contributed to the growth of Ethereum. As Ethereum has acted as a hedge in the consolidating market, it seems like the token has the potential to legitimize virtual currency. According to Noble, for the interest rate mechanism that will legitimize crypto tokens, Ethereum is the backbone. Noble highlighted that Ethereum could create a new image for the most famous cryptocurrency as a currency and collateral.

Ethereum seems to cook something secretly

As we can see in the current scenario, the institutions are rushing towards the token designed by Satoshi Nakamoto. In the space, there is a rumor that where the industry is observing towards the leading coin, Ethereum must have been designing something really strong and innovative. Indeed, this time it seems like after the pump fades and Bitcoin’s surging halts, DeFi might attract the investor’s eye.

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Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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