The second largest cryptocurrency in market value, Ether, linked to the Ethereum platform, reached a price of US$ 4 thousand (R$ 20.7 thousand). This represents an increase of 20% compared to last week — in the same period, Bitcoin had rise of 2%. The price of the currency has increased more than five times this year and brought the capitalization to the level of US$471 billion (R$2.4 trillion).
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 12th and, after that, there was a liquidation of about 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 to Bitcoin ratio, which was above 0.07.
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Image: Reproduction/Unsplash/Pierre Borthiry
Supply and demand
The recovery in currency prices was also influenced by non-fungible tokens (NFT) and yield-generating decentralized finance (DeFi) tokens.
Simon Peters, cryptoactive analyst for the eToro platform, says the number of Ether tokens applied in DeFi is growing. “This has increased the pressure on the offer of these items, as fewer and fewer tokens are available for trading.”
He points out that the bet on Ether has grown. “Currently, about 7.2 million Ether are in use, which equates to about 6% of all Ether tokens. This limits the offer.”
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