Ethereum Is Growing on a Wave of Investment

Ethereum has seen a significant investment inflow over the past week. Probably, that is the main reason to explain the uptrend in the biggest altcoin's price.

On May 5, 2021, Ethereum recorded its new all-time high of $3,541.46, and it is expected to extend its rally and correct gains to hit and surpass the $4,000 cap in the first half of this year.

The community is looking at Ethereum hoping it will kick off an unmatched ‘alt season’. Ethereum is more likely to take the lead with the entire percentage of crypto asset market capitalisation compared to other altcoins.

Ethereum (ETH) is now up by more than 300%, but its biggest rival Bitcoin is just up almost 95% based on the current prices.

Is Ether a good investment asset?

At press time, Ethereum, the second biggest crypto by market cap, is trading at around $3,440 (+3.02%), with a market cap (MC) of over $397.65 billion (+3%) and 24h volume of $44.698 billion. ETH is still the second dominant in the global cryptocurrency market with 16.9%. If altcoin is to end Bitcoin’s hegemony, it needs to more than double (to multiply its MC by 2.7).

Some of the reasons why Ether price is high is because of the imminent protocol upgrades (the Ether Improvement Proposal 1559 that is expected to go live soon will unprecedentedly transform ETH’s transaction fee model), strong on-chain signals (Ether is far apart from Bitcoin when it comes to NFTs and DeFi), and the increased institutional interest.

For instance, in the last 17 days, about four Ethereum exchange-traded funds (ETFs) rolled out on the Toronto Stock Exchange and this has enabled institutions such as Visa, EIB European Investment Bank) and other users to gain access as demand for Ether exposure increases above that of other crypto assets including Bitcoin. CME also rolled out ETH futures in February that helped institutional venture capitalists to exploit directional bets on Ethereum.

The altcoin has been among the top performers since its launch in July 2015, so it has tested all the storm. Therefore, to a larger extent, Ether is likely to be a profitable investment and investing in ETH could pay off bullishly. Cryptocurrency experts are optimistic that altcoin will grow further, so investing money and time in Ether could be a smart financial decision for the long term.