While Bitcoin is trading flat at around $ 58,000, Ethereum continues to grow. Over the past 24 hours, the ETH rate has grown by 27% and for the first time in history exceeded $ 3,000. Now ether is trading slightly below $ 3,200.
Since the beginning of 2021, the rate of the second cryptocurrency has grown by 300%, and by 1,400% over the year. Just a year ago, in May 2020, ether could be bought for about $ 200. At the same time, the growth rate of ether exceeds the growth rate of Bitcoin and most major cryptocurrencies. So, over the same period, BTC grew by 550%. If in May 2020 it cost $ 9,000, now BTC is trading at $ 58,000.
The growth of the Ethereum rate is due to fundamental factors. ETH’s results are indicative, but logical. First, over the past and current year, the entire cryptocurrency market has shown significant growth. In addition, the Ethereum ecosystem continues to grow rapidly. At the moment, the transition of the Ethereum network from the PoW consensus to PoS is being prepared, and after the launch of the Beacon chain in December, some of the coins are withdrawn from circulation for staking. By the beginning of May, more than 4 million ETH were blocked for staking in the “blank” of the Ethereum 2.0 network.
However, Ethereum PoW miners are also showing record revenues. In April of this year, ETH miners received $ 1.59 billion in profit. This is slightly less than the Bitcoin miners who earned $ 1.7 billion, but the profit has been growing since October last year, and the Ethereum miners have been setting records in profitability for four months in a row.
Fundstrat analysts expect ETH to reach $ 10,000 this year.