The awakening of Ethereum. In recent days, Ethereum (ETH) experienced a very nice comebackpassing closely of 1,800 to $ 2,700 (+50%) in just one week. According to analysts of Bernsteinthis high increase would mainly be due to Three key factors that we are going to detail here.
- Ethereum experienced a spectacular rise, seeing its price increase by 1,800 to 2,700 dollars in a week.
- Bernstein identified three major factors as engines of this Ether increase.
The growth of stablecoins and Rwa tokenization benefits Ethereum
In a recent note To its customers, Bernstein explains that the recent increase inEthereum is partly fueled by the growth of stable and tokenization of active active worlds (Or RwaFor Real World Assets). These two sectors are experiencing strong expansion, and Ethereum is still the Privileged blockchain For these activities.
THE stablewhich are cryptocurrencies backed by stable assets such as the dollarhave seen their use explode, in particular by Cryptos traders and investors, and also for quick and inexpensive payments and transfers of funds.
Likewise, the tokenization Rwawhich consists in creating digital versions of classic assets such as thereal estate or the actionsgain in popularity, with giants of traditional finance such as Blackrock And Franklin Templeton who invest in this area.
THE Layers-2 attract more activity in Ethereum
Another factor in the rise in eth development of Layers-2 (L2, or second layer solution) of Ethereum. These solutions aim to improve scalability of the network by moving certain transactions out Main blockchain, while retaining Ethereum’s safety and decentralization.
Networks like Basesupported by Cornerbasegenerated significant income ($ 84 million last year), attracting the attention of institutional investors. In addition, companies like Robinhood with its acquisition of Wonderfiexplore the possibility of offering token actions on their own L2 channels.
These developments strengthen demand For Ethers, which are used to pay transaction fees (as gas) on these Layers-2.
Reduction of selling positions on ETH
Finally, Bernstein stresses that the decrease in positions Shorts (sellers) on Ether also contributed to its recent increase. During the last 12 to 18 months, many hedge funds have used ETH as « Delta-Neautre coverage », that is to say that they remained Long (buyers) on Bitcoin (BTC) and Solara (Soil) while shooting ETH to cover and limit their risks.
However, the course of Ether seems to have ended up mark a boot (a low market point) and the ETH is more perceived as underperforming Recently. Traders closed So their positions Shortswhich supplies the increase of the price of Ethereum.
In summary, the combination of the growth of stablecoins and RWA tokenization, the development of Layer 2, and the reduction in positions Shorts On the Ether largely explain the recent increase in cryptocurrency. With this beautiful rise, Ethereum could well be On the way to new heights. Some market observers, obviously very optimistic for the Prince of Altcoins, even see an eTH exceeded $ 10,000 by the end of the year !