The NFT craze has put Ethereum back on the map - the blockchain-based computer network that supports it - but the platform is already paying off for its success.
The price of ether, the in-house currency in the network, crossed the $ 3,000 milestone for the first time on Sunday and then surged to $ 3,271 due to the explosion of NFTs or fungible tokens and the impact of another market called defi. decentralized finance. It traded at just $ 210 a year ago.
Gains in ether, the second largest cryptocurrency by market cap after Bitcoin, accelerated even as bitcoin's momentum slowed. Ether gained more than 40% in April, while Bitcoin fell about 2.4%.
Launched in 2015 on the concepts behind bitcoin, thereum is a platform for developers to build and run apps such as Android or iOS. Alphabet Inc. and Apple Inc. Unlike operating systems owned and controlled by Ethereum, it is an open source software project, meaning no central party has control.
The rally in ether is due to the last burst of activity in the network. About seven million new Ethereum addresses or accounts that can hold ether balances were created in the first four months of 2021, bringing the total to over 55 million, according to analytics firm IntoTheBlock. According to research firm Messari, the dollar value of transactions on the platform totaled $ 1.5 trillion in the first quarter, more than in the previous seven quarters.
Another stamp of approval: The European Investment Bank, a European Union member state lender, issued two-year bonds worth $ 120 million on the Ethereum network last week, which was the first for such a large-scale issuance.
"Currently, the value and use case of Ethereum has been confirmed," said Danny Kim, revenue head of crypto parent broker SFOX.
However, this success has led to network congestion and increased transaction fees, leading to competitors entering the market, as well as growing concerns about the environmental impact of cryptocurrencies.
For most of its existence, Ethereum promised more than earnings. That changed over the past year, thanks to NFTs and defi.
NFTs are bitcoin-like tokens, with a twist: Only one is created at a time, and they cannot be interchanged like currency tokens. NFT is tied to a digital artwork or other real world product and sold as a unique digital property.
Since the launch of the National Basketball Association's "Top Shot" collections six months ago, NFTs have become a cultural phenomenon. The Kings of Leon band sold the NFTs linked to an album release. Twitter Inc. Chief Executive Officer Jack Dorsey auctioned an NFT of his first tweet. Is it the peak? Digital artist Beeple sold a record $ 69 million NFT artwork at Christie's.
According to data monitoring site NonFungible, the total value of NFT sales on the Ethereum network rose from $ 94 million in the fourth quarter to $ 2 billion in the first quarter.
Meanwhile, the defi market consists of a wide range of financial services that allow crypto holders to borrow or lend against their own assets. With more institutional investors entering the crypto markets, fueling the rally in bitcoin, and the expansion of derivative bets, there has been a corresponding demand to borrow crypto assets.
According to the DeFi Pulse website, the total amount of crypto held in defi protocols on Ethereum - referred to as "total value locked" - jumped from about $ 900 million to $ 68 billion a year ago.
According to data monitoring site NonFungible, the total value of NFT sales on the Ethereum network rose from $ 94 million in the fourth quarter to $ 2 billion in the first quarter.
Meanwhile, the defi market consists of a wide range of financial services that allow crypto holders to borrow or loan against their own assets. With more institutional investors entering the crypto markets, fueling the rally in bitcoin, and the expansion of derivative bets, there has been a corresponding demand to borrow crypto assets.
Etherium is a well competing coin now a days. Do follow too