The second largest cryptocurrency by market value, Ether, linked to the Ethereum platform, has fetched a price of US $ 4,000 (R $ 20.7,000). This is a 20% increase from last week – during the same period Bitcoin has increased by 2%. The price of the currency has increased more than five times this year and raised the capitalization to the level of 471 billion US dollars (2,400 billion reais).
Experts estimate that the asset’s appreciation should continue towards its highest price to date, at US $ 4,300 (R $ 22,300). The value was reached on May 12, and after that there was a liquidation of around 60%.
In August, the Ethereum blockchain network underwent an upgrade and its price accelerated to over $ 2,900 (R $ 15,000). This led to an increase in the Ether / Bitcoin ratio, which was above 0.07.
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Image: Reproduction / Unsplash / Pierre Borthiry
Supply and demand
The rally in currency prices was also influenced by non-fungible tokens (NFT) and decentralized return-generating finance (DeFi) tokens.
Simon Peters, cryptoactive analyst for the eToro platform, says the number of Ether tokens applied in DeFi is increasing. “This has increased the pressure on the supply of these items, as fewer and fewer tokens are available for exchange.”
He points out that the bet on Ether has increased. “Currently, around 7.2 million Ether is used, which is equivalent to around 6% of all Ether tokens. This limits the supply.
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