Breaking News: Ether Skyrockets to $4K, Surpassing All Predictions in Over 2 Years!
The value of Ether (ETH), the second-largest cryptocurrency, surpassed $4,000 on Friday for the first time in over two years.
Along with its surge in value, Ether has been making headlines over the past few months alongside market leader Bitcoin, which reached record highs on March 5. The last time Ether was valued this high was on December 28, 2021.
Ether’s recent performance has outpaced that of Bitcoin, with a 67% increase in the past 30 days compared to Bitcoin’s 57%. Even the broader crypto market, as measured by the CoinDesk 20 Index, saw a 53% jump during this time period.
The catalyst for Ether’s rise is attributed to market speculation regarding the approval of a spot Ether exchange-traded fund (ETF) in the United States. A regulatory decision on this matter is anticipated in May. Previously, spot Bitcoin ETFs were approved in January and have seen significant net inflows.
While there is uncertainty surrounding the approval of a spot ETF for Ether, Bitwise analysts believe that it is likely to happen “sooner or later.” According to them, the chances of approval are between 50%-60%, suggesting that even if not approved immediately, it is still likely to happen in the future.
The upcoming Dencun upgrade of the Ethereum blockchain, scheduled for March 13, has also been a contributing factor to Ether’s rise in value. The upgrade is expected to result in lower transaction fees for users of layer-2 networks, making the token more attractive to investors and users alike.
Edited by Sheldon Reback and Nikhilesh De.
Ether (ETH), the second-largest cryptocurrency by market value, reached a new milestone on Friday as its value surpassed $4,000 for the first time in more than two years.
The impressive climbing of this cryptocurrency parallels that of bitcoin, which also reached record highs on March 5. Prior to this surge, the last time ether was priced at $4,000 was on December 28, 2021.
Ether has surpassed bitcoin in terms of performance in the past month, with a 67% increase compared to bitcoin’s 57%. Even the broader crypto market, as represented by the CoinDesk 20 Index, saw a 53% growth during this period.
The surge in ether’s value has been attributed to speculation surrounding the approval of a spot ether exchange-traded fund (ETF) in the United States. An announcement on this is expected in May. Similar to spot bitcoin ETFs that were approved in January, large inflows are expected into spot ether ETFs upon approval.
However, there is still uncertainty over whether a spot ETF for ether will be approved. Bitwise analysts believe that it may be approved “sooner or later” with a 50%-60% chance of approval. This suggests that even if not approved immediately, it is likely to happen in the future.
The upcoming Dencun upgrade of the Ethereum blockchain, scheduled for March 13, is also contributing to the rise in value of ether. The upgrade is expected to result in lower transaction fees for users of layer-2 networks, making the token more appealing to investors and users.
