Ethereum (CRYPTO: ETH) saw another major price uptick reaching levels not seen since the month of its all-time high following a positive change in its fundamentals which attracted investments.
What Happened: According to CoinMarketCap data, Ether saw its price climb nearly 14.2% higher from its 24-hour low of $2,769 to a high of $3,162, before settling at its current price of $3,109 as of press time. The price uptick is accompanied by healthily growing trading volumes, which followed the implementation of the London network upgrade that resulted in rules forcing the network to burn (destroy forever) thousands of Ether each day.
According to recent reports, Co-Founder of investment firm Multicoin Capital, Kyle Samani, recently described the upgrade as “one of the most interesting and important upgrades in the history of Ethereum,” pointing out that it will reduce the coin’s supply, which will lead to higher prices. According to him, this update will result in people looking for a store of value buying Ether instead of just Bitcoin (CRYPTO: BTC). His reasoning is probably based on estimates suggesting that Ether is likely to become deflationary following its transition to proof-of-stake.
On the back of those reports, Ethereum has been rallying so much this year that — according to recent estimates — it left Bitcoin in the dust by reaching a price 278% higher than the price of $736 reported on Jan 1, 2021, where Bitcoin rose by 237% less. Ethereum proponents are even suggesting that — after recently overtaking blue-chip companies such as Paypal Holdings Inc (NASDAQ:PYPL), Bank of America Corp (NYSE:BAC) and Adobe Inc.’s (NASDAQ: ADBE) — it could soon see its market cap reach higher than Bitcoin’s.