Ethereum price has renewed its all-time high

Since the beginning of the year, the price of the cryptocurrency has doubled; since March 2020, it has grown more than 16 times, reaching $ 1,440. The asset price began to rise against the background of several essential factors.

The Ethereum price on the BitXmi crypto exchange for the first time in history reached $ 1440, breaking the maximum of $ 1428, set in January 2018. Over the past day, the largest altcoin in terms of capitalization has risen in price by 17%, since the beginning of the year – by almost 100%. In mid-March 2020, asset quotes fell to a local minimum of $ 86. Since then, they have grown by 1574%.

On January 19, Ether outpaced Bitcoin in terms of daily transaction volume. On the altcoin network, transactions were made for $ 12 billion, $ 3 billion more than Bitcoin. The data presented does not include transactions on decentralized exchanges.

The reasons for the Ethereum price growth 

Ether price rises amid the Bitcoin rally. On January 8, the first cryptocurrency set a historical maximum value near the mark of $ 42 thousand. Now it is traded at the level of $ 37.3 thousand, over the past day the growth was 3%, since the beginning of the year – 30%.

Also, the growth of the Ethereum rate could be influenced by the addition of futures on it by the Chicago Mercantile Exchange (CME). The new product is awaiting assessment by the financial regulator. The reason for adding the instrument was the growing demand for crypto derivatives.

Another equally important reason for the value growth is the launch of the zero phase of Ethereum 2.0, which took place in December 2020. The update will replace the mining function with staking. This means that ETH holders will be able to passively increase their coin supply.

Earlier, the managing partner of the Moonrool Capital fund Simon Dedich predicted that the value of Ethereum would double after it hit its all-time high. According to Dedic, asset price can rapidly grow to $ 3 thousand.

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