ETH crossed $1,200 for the first time in three years, thanks to a 55% weekly increase
The bullish fervor surrounding Ethereum (ETH) has intensified, with the second-largest cryptocurrency by market cap surpassing $1,200 for the first time in three years.
This increase was driven by a number of fundamental factors, such as Bitcoin’s parabolic rally, the impending introduction of ETH futures contracts, and the success of the DeFi sector.
Ether at $1,200
Ether peaked at $1,223.84 on Bitstamp, the highest price since January 2018. At the time of writing ETH stands at exactly $1,200, up 5% from yesterday and 55% from a week ago. Its capitalization is now $133 billion.
Should it maintain its current pace, in a few days Ether could easily cross the all-time high of $1,432.88.
Bitcoin pushes up the entire crypto market
In 2021, Bitcoin’s gravitational pull on the cryptocurrency market has intensified. The price of BTC recently surpassed $37,000 and continues to rise.
Over the past month, Bitcoin’s value has risen nearly 90 percent in the wake of growing institutional interest and a supply squeeze that limits the available supply. Ether and other digital assets have benefited from this bullish movement: in fact, it appears that institutional investors are beginning to express interest in ETH as getting their hands on BTC becomes increasingly difficult.
CME prepares to launch ETH futures
CME Group has also identified growing institutional interest in Ethereum, and has therefore announced plans to launch a new futures product based on ETH.
The CME CF Ether Reference Rate, scheduled to launch on February 8, will offer traditional traders more efficient exposure to ETH: this should significantly increase the cryptocurrency’s adoption among institutional circles.
The DeFi boom is not over
Although the DeFi craze seems to have calmed down from the highs of the summer, the ecosystem is still growing: this week, almost all major DeFi tokens achieved excellent rises, sometimes even outperforming Ether.
Since many DeFi projects were developed on Ethereum, their success tends to have a positive effect on ETH as well. According to CoinMetrics, decentralized finance could be an important catalyst for Ethereum’s growth in the long term.
The data shows a significant increase in total blocked value (TVL) in DeFi projects: there is about $21.7 billion in the ecosystem, the highest figure ever.