Bitcoin
$ 53,162
Ethereum
$ 2,141.6
XRP
$ 0.7382

Why do many investors consider Ethereum to be the proxy for the alternative digital currency market?

Source: https://bit.ly/3vYDaMK

Ethereum has increased by more than 13 percent compared to last week.

At the time of preparing the article, Ethereum is trading above $ 3,900, after the coin had registered above $ 4,000 the previous day.

The market value of the largest alternative has surpassed $ 450 billion, another recent record for the currency.

In order to highlight the place Ethereum occupies in the market, Joshua Frank, CEO of The Tie, a cryptocurrency-focused data company, said:

ETHEREUM IS CONSIDERED BY MANY INVESTORS TO BE A PROXY FOR THE ALTERNATIVE CURRENCY MARKET … THE 24-HOUR VOLUME OF TWEETS ABOUT ETHEREUM RECORDED 59,000 TWEETS, WHICH IS UNBELIEVABLE, WITH ETHEREUM CONTINUING TO RISE TO ALL-TIME HIGHS.

The number of Ethereum transactions recently reached a record high of 60,471 transactions, while the previous high of 60,456 transactions was recorded more than two weeks ago, exactly on April 23.

Ethereum’s rise began to accelerate after the upgrade to the “Berlin Modernization” that took place on April 15th.

Besides, the growing popularity of NFT tokens and decentralized financing DeFi have also contributed to the rise in Ethereum prices.

Flora Sun, director of Binance X, commented:

THERE ARE A LOT OF INNOVATIONS IN DEFI PROTOCOLS THESE DAYS.

DEFI STILL OFFERS A MUCH HIGHER RETURN THAN CONVENTIONAL FINANCING, SO IT NATURALLY ATTRACTS A LOT OF LIQUIDITY TO THE CRYPTO MARKET.

A low ETH balance in trading platforms means a bullish sign, as it will translate into a decrease in supply, thus providing an additional bullish catalyst for the alt currency.

It is also possible that the development of the expected “EIP-1559” protocol of Ethereum and the modernization of “London” which is scheduled to follow in July this year will affect the price of Ethereum.

Confirming this, “Crypto.com” Chief Operations Officer, Eric Anziani, stated:

THIS UPGRADE WILL START BURNING TRANSACTION FEES, NATURALLY REDUCING ETHEREUM’S INFLATION RATE.

IF NETWORK UTILIZATION IS HIGH ENOUGH, ETHEREUM MAY BECOME CONTRACTILE.

THIS IS A VERY BULLISH DEVELOPMENT THAT THE MARKET IS JUST STARTING TO PRICE.

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