Two leading cryptocurrencies, Bitcoin and Ethereum, have shown incredible growth since the beginning of the year, and both assets have reached new record highs. Moreover, the assets have generated increased interest from institutional investors, who have continued to invest millions of dollars in them, pushing prices up. For example, Ethereum has managed to approach $2,000, although this level has not yet been reached.
To narrow this view, just last week in bitcoin, the leading cryptocurrency, Tesla Inc. invested more than 1 billion dollars. (NASDAY: TSLA), a leading car manufacturer that raised the value of the asset to a new high of more than $48,000. Not left aside and Ethereum, its cost overcame the barrier of 1800 dollars to reach a new own maximum.
Although both digital coins are currently undergoing some price correction, it is safe to say that the value of these assets will still grow. However, there is a multimillion-dollar question: can Ethereum surpass its more popular counterpart? And if so, what factors can contribute to its growth?
How Ethereum Worked Before
Last year, the value of the crypto industry's assets plummeted during the coronavirus pandemic, but by the end of the year Bitcoin continued to move, bringing it above the $20,000 mark. Since then, the asset has grown by more than 133% from that time until that period.
Ethereum, since its previous historical high has risen by only 38%, this means that the asset has a lot of work to do to match the progress of bitcoin. This may be due to the growth of decentralized financing (DeFi), which depends on the Eth network, plus the development of ETH 2.0 means that the second largest crypto asset by market capitalization is switching to the Proof-of-Stake system, already supplied by ETH at a cost of more than $4 billion.
Institutional investors' interest in ETH
The interest of institutional investors in Ethereum has increased dramatically recently. Grayscale Investments has reopened its Ethereum Trust to accredited private investors. This became known from an announcement made by the firm on its official Twitter account, which said that these investors can now make daily subscriptions.
As of 16:00 EST today Grayscale Ethereum Trust has resumed private placement of its shares. Private Trust accommodation is offered on a periodic basis throughout the year and is now available to accredited investors for a daily subscription.
In addition to Grayscale, CME Group also recently launched a futures contract for Ethereum, which coincides with a sharp jump in the price of the asset. The launch of this futures contract greatly contributed to this work with the firm's managing director Tim McCury, highlighting the fact that the firm recorded an impressive opening day on its platform.
When will Ethereum reach $2,000?
There are legends about the volatility of the crypto industry, as it is impossible to accurately predict the next movement of the asset. However, given the fact that recently in the crypto industry there has been a general bullish growth, we can assume that the cost of Ethereum will break through the level of 2000 dollars before the end of this week.
Perhaps, if this does not happen now, then expect a jump before the end of this month, which may be due to the interest of institutional investors and market activity of investors in DeFi.
One undeniable thing is that at the moment when Ethereum eventually takes off, crypto-enthusiasts won't be as surprised as they have long expected.