Ethereum (ETH), the second largest digital asset by market cap, broke above $2,000 and hit a new record of $2,042 during early Asian hours on Feb. 20.
At the time of writing, ETH/USD is changing hands at $2,000, having gained over 5%, in the past 24 hours, and over 200%, since the start of the year. Ethereum’s market capitalization has surpassed $230 billion, while an average daily trading volume exceeded $40 billion.
On the verge of a massive bullish trend
The second-largest digital asset is driven by a range of positive fundamental developments including the successful launch of ETH futures on the CME and increased institutional demand.
Analysts from Fundstrat Global Advisors LLC say that ETH is on the verge of a massive bullish trend that will eventually push the price of the token above $10,000.
The report pointed out that a booming decentralized finance (DeFi) industry will be instrumental for ETH’s strong growth, as the overwhelming majority of DeFi projects are built on top of the Ethereum blockchain.
Apart from that, the emerging non-fungible token (NFT) industry is also fueling ETH growth. The total value of transactions in the NFT sector saw a nearly 300% growth in 2020 and the trend is set to continue.
According to the research conducted by NonFungible.com and foresight company L’Atelier BNP Paribas, the industry will become a major driver of the virtual economy in 2021.
The cryptocurrency market is on fire, as the first digital currency bitcoin (BTC) hit a new ATH above $56,000 on Feb. 19, while its market value surpassed $1 trillion for the first time in history.
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*The article is for information purposes and market analysis only, not an article that encourages investment. You should do your own research before making any investment decisions. Crypto, Forex news updated 24/7 on our social media channels: Follow us at TimeBit and Telegram Timebit-Cryptonews.