Recently, the cryptocurrency market has started to 'stir things up' again, with Ethereum, this dark horse, racing ahead on the crypto track, its price skyrocketing like a rocket, keeping investors' hearts in suspense.
In this frenzy of rising prices, the most direct feeling is the wild fluctuations in numbers. In just a few days, Ethereum jumped from $2500.
In a single breath, it broke through the $3000 mark with a seven-day increase of 16.2%. This is akin to a student who was previously mediocre suddenly ranking at the top in the final exam, leaving classmates astonished. With this strong surge, Ethereum's market capitalization has also risen significantly, climbing to $36.168 billion, ranking 35th in global asset market capitalization, surpassing many traditional financial giants—truly sitting just below Bitcoin, the 'king' of the crypto world.
Let's dive deeper into the reasons behind this; it’s a veritable 'free-for-all' of forces at play. First, looking at stablecoins, within the Ethereum network, stablecoins are like a group of diligent little bees, constantly supplying liquidity to the entire ecosystem.
Just recently, the adoption rate of stablecoins based on Ethereum reached an all-time high, with over 750,000 independent users weekly. USDT and USDC account for a significant portion of the stablecoin market on Ethereum, like two top masters in the martial arts world, each leading their own way. Furthermore, this year, various stablecoins have been very active on the Ethereum network, issuing and increasing their supply, bustling with activity. Their vibrancy has significantly boosted Ethereum's trading volume and asset liquidity, akin to fueling Ethereum's supercar to full throttle.
Looking at those enterprises, each one resembles an explorer who has discovered treasure, eagerly incorporating ETH into their asset reserves. The publicly listed company Bit Digital even directly transformed itself to become a 'pure Ethereum staking and treasury company', a determination akin to someone wholeheartedly switching careers to pursue significant endeavors. Additionally, a wave of companies like SharpLink Gaming and BitMine are aggressively increasing their holdings in ETH, as if ETH is the 'magic tool' that will grant them financial freedom. Statistics show that the amount of ETH purchased by companies holding it as treasury assets has already surpassed the newly issued ETH, akin to a sudden influx of eager buyers clearing the shelves, making it hard for prices not to rise.
The whales are also restless, entering the fray to stir things up. They are like mysterious martial arts masters, usually hiding their skills, but when they act, it shocks the community. On July 5, a whale took advantage of the market drop and decisively purchased 1616.53 ETH, much like shopping at a market, with this purchase amounting to a staggering $4.038 million 'expensive vegetable'. Various whale accounts are alternately selling WBTC and buying ETH, making the market bustling with activity. Every operation they make is like throwing a massive stone into a calm lake, creating ripples and keeping investors on edge.
Ethereum's official team is also joining the excitement, announcing a restructuring of its ecosystem development strategy and proposing a series of development plans, much like a company preparing for significant reforms and ready to make a big push. This news undoubtedly injected a strong boost into the market, filling investors with anticipation for Ethereum's future. Moreover, Ethereum co-founder Vitalik Buterin and Ethereum researcher Toni Wahrstätter jointly authored proposal EIP-7983, akin to creating a new martial arts manual for Ethereum, aimed at optimizing its performance.
Of course, the shift in America’s cryptocurrency policy has also had a significant impact on Ethereum. New legislation may clarify stablecoin regulations and promote investment, which for Ethereum is like receiving official 'recognition', allowing it to tread more firmly on the path of compliance, attracting more investors and developers to participate in the Ethereum ecosystem.
In this Ethereum surge celebration, some have made a fortune and can’t stop smiling; others regret missing out and are slapping their thighs in frustration. But the crypto world is like that, full of uncertainty and risk, much like an exhilarating adventure. What will the future trajectory of Ethereum be? Will it continue to surge forward, or will it face a 'Waterloo'? It’s like a suspenseful movie; let’s wait and see! However, I must remind investors that the crypto world carries risks, and one should invest cautiously. Don’t let temporary madness cloud your judgment, or you might find yourself crying with nowhere to turn.
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