ETH exceeded $ 324 and peaked since July 2019. The growth of the second cryptocurrency is likely due to the boom in the DeFi industry and the imminent launch of the final version of the Ethereum 2.0 testnet.
According to CoinMarketCap , over the past day, the price of ETH has grown by 6.8% and exceeded $ 324. The upward price movement began last Wednesday, when Ether rose from $ 245 to $ 262 in about ten minutes. On Thursday afternoon, ETH rallied to $ 277 and continued to rally, reaching $ 285 by Saturday. On Sunday, the air was already trading at $ 316.
The success of ETH also divided BTC, which yesterday broke through $ 10,000 and is now trading at $ 10,300. The rise in the price of ether is most likely associated with the growth of the DeFi industry, most of which run on Ethereum. Last Wednesday, the volume of crypto assets blocked in DeFi applications reached $ 3 billion, and on Saturday it already exceeded $ 4 billion.
This growth was partly due to the “yield farming” trend – the practice of maximizing rewards for providing liquidity using solutions with high leverage. The tokens of the largest decentralized finance protocols – LEND and COMP – have also risen in value dramatically, which has impacted the boom in the DeFi industry and Ethereum.
Another possible reason for the growth of ETH is news of the successful testing of Ethereum 2.0 and the imminent launch of the final version of the testnet, which is scheduled for August 4th. However, the deployment of the Medalla testnet will only begin when at least 16,384 deposits totaling 32 ETH have been made. Funds must be deposited 48 hours before the earliest date for the creation of the first block.
The air rally as a whole cannot be called unexpected. It became known on Thursday that since the beginning of last week, the “whales” have moved 700,000 ETH, equivalent to $ 182 million, to cryptocurrency exchanges. Then analysts suggested that large investors are preparing for the upward movement of the ether price.