Hi guys! How's going? I hope all right!
Today the price of Ethereum (ETH) set a new all-time high. In fact, for the first time in its history, it surpassed $3,900, peaking at nearly $4,000. It has now settled above $3,950. In fact, the price of ETH has been making new all-time highs for days now.
After the price first broke through the $2,600 mark on April 22, it dropped to $2,200, but this was only a temporary correction. Already starting from April 26th the price started to rise again, exceeding for the first time 2,700$ on April 28th, and 2,800$ on May 1st. At least, yesterday it also exceeded 3,800$ for the first time, while today it also rose above the 4,000$ threshold.
The reasons behind Ethereum's new all-time high
According to some speculations, today's momentum, which generated a gain of more than +10% compared to yesterday, would be due to the news that the European Investment Bank (EIB) announced the issuance of a digital bond based precisely on Ethereum. This news, however, dates back to April 28, so it is unlikely to have impacted the price just today. However, it must be said that on Wednesday, April 28, the price of ETH reached a new all-time high and exceeded $2700 for the first time, while during the weekend the traditional financial operators are closed.
Another reason instead could simply be due to a growth in market demand, in particular related to NFTs.
In fact many NFTs are issued on the Ethereum network, and to transact them it is necessary to pay for the gas in ETH. After a short period, between mid-March and end of April, during which the hype on NFTs had significantly reduced, starting from April 25th there has been a new growth. It is probably not a coincidence that the price of ETH started to rise again on April 26th after the short drop in the days following April 22nd.
The interest in NFTs has been growing again in the last few days and this might have caused an increase in demand for ETH.
It should be noted that at the beginning of the year the price of Ether was a quarter of what it is today, so during 2021 the return on ETH was over 500%, in just five months. Moreover, the maximum price reached during the last big speculative bubble, the one in late 2017/early 2018, was less than $1,500, which is less than half of the current price.
And what do you think about the sudden growth of Ethereum? Let me now in the comment section!
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