Ether briefly rose above $4,000 (about Rs. 2.92,000) late Friday amid a month-long wave surrounding a major upgrade, and as demand for non-replaceable tokens continues to grow.
The second-largest cryptocurrency soared to $4,027 (about Rs. 2,93,900) on Friday before wiping out its gains. It stood at $3,914 (approximately Rs. 2,85,700) at 12:06 AM on Saturday in Hong Kong, trading at levels only previously reached in May. Ether has gained more than 50 percent since the end of July, with the upgrade of the Ethereum network in London early last month, increasing supply.
On September 4 (12:12 pm IST), the Ether price in India stood at Rs. 3,502 lakhs.
“Since the EIP-1559 upgrade a month ago, more than $180,000 ETH (equivalent to over $700 million or roughly Rs. 5,109 crores at current market prices) has been burned, resulting in continued disinflationary pressures on the Ethereum supply, The Fundstrat crypto team wrote in a note Friday.
Ether has also performed well despite continued interest in decentralized finance, or DeFi, and NFTs – much of which uses the Ethereum network. NFTs in particular have soared, with sales on the major marketplace OpenSea more than tenfold in August from the previous month.
Numerous cryptocurrencies have performed well. Solana — now the seventh largest cryptocurrency — is up 68 percent in the past seven days, and Polkadot is up 27 percent, according to Coingecko.com. The total crypto market cap is $2.36 trillion (approximately Rs. 1,72,26,737 crores), after hitting a low of $1.24 trillion (approximately Rs. 90,51,336 crores) on July 20, data from CoinGecko shows.
“The Ethereum outbreak continued overnight, to levels last seen in May this year, crashing into Cardano, Ripple and Polkadot,” said Martha Reyes-Hulme, head of research at digital asset prime brokerage and exchange Bequant, in a note on Friday. .
Bitcoin has not seen the gains of its smaller competitors, although it recently had its own success breaking through another $50,000 (approximately Rs. 36,49,700 crores) on Thursday. It has held close to the level since then, having been just below the main round figure level for more than a week.
“Hold on $50,000 and I expect Bitcoin to have another leg up to $60,000 (about Rs. 43,79,700) and test the April highs,” said Antoni Trenchev, co-founder of cryptocurrency lender Nexo. But Bitcoin “should start to close above $50,000 (about Rs. 36,49,700) and settle in the early 1950s to dampen concerns that this is a double top and we’re going back to $30,000 (about Rs. 21,89,800),” he said.
© 2021 Bloomberg LP