Ethereum has been gaining upside momentum for a while now. Today, it has made an all-time high of over $4000. At the time of going to press, the cryptocurrency was trading at $4122, with a market cap of $478.1 billion per data from Coinmarketcap. This means that it is now larger than major U.S companies such as Walmart and Johnson & Johnson.
The latest push in Ethereum’s price follows Friday’s announcement by VanEck that it had filed for an Ethereum ETF. If approved, the ETF would open up the second largest crypto asset by market cap to an even broader market in the U.S. That’s because an ETF would give investors a chance to have exposure to the market without buying the digital asset directly on exchanges. This would draw in wealthy institutional players who are afraid of the risks that come with crypto exchanges.
Ethereum’s upside momentum is also being driven by optimism around the upcoming Ethereum 2.0 upgrade. Once the upgrade is complete, Ether will be faster, and transactions will be cheaper. It will also be more environmentally friendly since it will no longer use the Proof-of-Work mining algorithm.
The upgrade will boost ETH’s already hugely successful DeFi ecosystem. The latest data shows that about $75 billion is locked up in various ETH smart contract projects.