Originally published on: November 10, 2024
Ethereum, the second-largest cryptocurrency in terms of market capitalization, recently soared to $3,200 on November 10th, marking its highest value since August. This surge coincided with Bitcoin climbing above $79,000 following Donald Trump’s victory in the US presidential election.
CoinMarketCap now reports that Ethereum’s market cap stands at approximately $383 billion, reflecting a nearly 5% increase in just 24 hours. This places Ethereum’s market cap around $40 billion higher than that of Bank of America.
This milestone underscores a significant shift in the financial market dynamics, as the adoption and growth of blockchain technology continue to outpace traditional finance (TradFi). The surge in Ethereum’s value relative to Bank of America indicates the increasing popularity of decentralized finance (DeFi) and crypto assets, especially as the US Securities and Exchange Commission explores the possibility of listing options tied to spot ETH exchange-traded funds (ETFs).
Ethereum has experienced its most substantial weekly price movement since May, with Bitcoin’s escalating value pushing boundaries and reaching new all-time highs (ATHs). Despite this positive trend, Ethereum’s supply has been rapidly expanding over the past week, with an inflationary rate of 0.424% per year, compared to its previous deflationary trend in October.
According to data from Ultrasound.money, Ethereum’s current yearly burn rate amounts to 452,000 ETH, while the issuance rate is more than double that at 957,000 ETH. This results in an annual supply increase of 0.42%.
Analysts on various platforms have expressed mixed sentiments about Ethereum’s future price action, with many anticipating further upward movement and predicting a new ATH in the near future. Some predict that Ethereum could surpass the $4,000 mark with relative ease, while others foresee a slight pullback before a surge towards $4,300.
In a recent development, Ethereum’s co-founder Vitalik Buterin introduced the concept of “info finance” on November 9th. Info finance aims to use prediction markets to gather insights from the community about upcoming events in a way that fosters public discourse without undue influence or sensationalism from the media.
As Ethereum continues to make waves in the financial world, the future looks promising for this leading cryptocurrency. Stay tuned for more updates on Ethereum and other emerging trends in the world of decentralized finance.
