Ethereum capitalization is struggling to maintain its price momentum
Ethereum, which was rising to $4,346,000 at the beginning of May 12, is down slightly during the day, sitting at just under $4,300. Ethereum’s capitalization is at around $500 billion.
Ethereum capitalization continue to be compared to how bitcoin moves along its market trajectory. The same $500 billion is what all bitcoins were worth at the end of December 2020. After Ethereum crossed the $4,000 mark for the first time in its history on May 10, analysts are trying to predict the digital asset’s future development. Ethereum, despite its impressive rise, in the last seven days in terms of growth rate (+28.9%) is somewhat inferior to the dynamics of Cardano, which rose in price by 32% during the same time.
Ethereum is very popular largely due to the fact that the majority of decentralized finance (DeFi) projects are based on it. At the same time, the popularity of Dogecoin competitors has led to another spike in transaction fees on the Ethereum blockchain. High hopes for a decrease in the value of transaction fees are pinned on the appearance in the future of a new “version” of Ethereum, Ethereum 2.0. Ethereum now has more than $18 billion in Deposit Contracts in the 2.0 stack.
So far, a reduction in leveraged trading with Ethereum could lead to a technical correction in the price of the digital asset to the $3,000 level. However, overall interest in the asset has the potential to put it back on a growth trajectory. The number of digital addresses with at least 0.1 Ethereum is increasing and has now exceeded 5 million. Ethereum spot trading volume is 10 times the values of Q4 2020.