The largest altcoin by market cap, Ethereum has reached an all-time high. Ethereum rallied to a new high of $2600 after a daily gain of 9.2% as shown by Cointelegraph Markets Pro and Trading view.
Ethereum seems to be unaffected by the slump in Bitcoin as it saw a high rise in value as other cryptos were struggling to find their feet. Coming against Bitcoin, Ethereum recorded 0.047 on the Eth/BTC BITSTAMP 1 hour candle chart on TradingView, the highest it has ever reached in the last 3 years.
The altcoin was the stand out performer on the day as the price in Bitcoin faltered. Other altcoins did not do any better. Investors and analysts have expressed confidence in the coin as lately, it tends to be the currency for most digital transactions.
These claims were made by Raoul Pal, the CEO of Real Vision in a series of tweets. He said everything from Defi to NFT is priced in Ether. He referred to Bitcoin as collateral and the base layer.
Furthermore, this new found Ethereum dominance over BTC may not end soon as analysts believe it may continue for a while before BTC recovers.
Bitcoin Price Has Affected Altcoins
The strength of altcoins was already showing in Bitcoin’s staggering dominance in market cap. For the first time in almost 3 years, it went below 50%. These happenings tend to see altcoins rise very fast before they crash.
The latest rise in Ethereum price had a little level of predictability in terms of gas fees. They unsurprisingly went high serving a timely reminder for those who were not aware during the former bull market phases.
Other altcoins like LINK and LTC have also recorded highs as they have both gone up to about 6.5%.
Although the launch of the Berlin Fork came with the promise of reducing transaction fees, it has so far not been the case. The average fee stands at $24 for a transaction.
The new upgrade was supposed to overhaul Ethereum’s fee structure but experts are also of the opinion that the solution may not be long term. In the light of this, traders have been advised to tread carefully as the volatility of Ethereum price is well known.
This rise in transaction fees has been attributed to the ever busy nature of the blockchain as it has been processing lots of transactions lately. This has understandably made the speed of transactions slower.
Ethereum’s Supply Expected To Drop
The EIP 1559 upgrade is going to affect the price and supply of Ether according to Nick Spanos, the cofounder of Zap protocol. He said the 1559 upgrade will decrease the supply of Ethereum and thus, result in a corresponding decrease in price, which will make room for more people to invest.
Ethereum is definitely enjoying being in the spotlight and investors are smiling to the bank. However, caution has been advised by analysts.