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- Ether price hike has been boosted by the European Investment Bank’s (EIB) debut digital bond sale and praise from JP Morgan.
- Ethereum investors are also enthusiastic about a JP Morgan report that predicted ethereum will continue to outperform bitcoin.
- One of the factors behind the ether surge is the launch of ethereum 2.0.
Ethereum, the second-largest cryptocurrency after bitcoin, has brought in more gains to the crypto market as it touches nearly $3,000. It has been boosted by the European Investment Bank’s (EIB) debut digital bond sale and praise from JP Morgan.
Ethereum is up more than three-fold from the beginning of the year as it emerges as the “backbone of the crypto-native economy”.
What has pushed Ether up?
The European Union’s lending arm, EIB used ethereum to issue digital bonds, worth over $100 million, for the first time. This led to claims from cryptocurrency and blockchain advocates that the financial market is poised to adopt crypto technology.
Seamus Donoghue, vice president of strategic alliances at digital asset infrastructure provider Metaco, told Forbes that he expects a complete rewiring of centralized capital markets to leverage decentralized financial blockchain markets. He said the rails for a new decentralized capital market are being built on ethereum.
Moreover, ethereum investors are also enthusiastic about a JP Morgan report that predicted ethereum will continue to outperform bitcoin. As a matter of fact, ether has been doing this by a factor of two over the last 12 months.
JP Morgan analysts led by Joshua Younger said bitcoin is more of a crypto commodity than currency and competes with gold as a store of value. In comparison, he said ethereum is the backbone of the crypto-native economy. The analyst explained that owning a share of this potential activity is more valuable; ethereum should outperform bitcoin over the long run.
Most activity in cryptocurrency space happens on ethereum
Financial interest in ether tends to follow in the wake of bitcoin rallies because it is the second-largest cryptocurrency. As such, it draws the attention of the novoice investor. And most activity in the cryptocurrency space happens on ethereum. One of the factors behind the ether surge is the launch of ethereum 2.0.
Experts say this upgrade addresses major concerns impacting the current version of Ethereum. It will reduce transaction fees, in particular, especially useful in DeFi trading, where each transaction can end up costing the equivalent of tens of US dollars. Ethereum 2.0 will also eliminate the environmentally wasteful mining currently required to make the ethereum blockchain function.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
