Ethereum (ETH) has topped the $3,000 psychological level this morning, soaring as high as US $3,050 after what can be described as a remarkable resurgence after the mid-April market crash.
The second-largest cryptocurrency by market cap has seen a consistent upward traction over the past week – with its current value representing a remarkable 15-fold rise from its $200 level price a year ago.
Ether started to pick up momentum last week after media reports suggested the European Investment Bank (EIB) could launch a digital bond sale on the ethereum blockchain network in collaboration with heavyweight banks.
According to the EIB, digitizing capital markets may bring benefits such as a reduction in intermediaries and fixed costs, improved transparency by providing visibility for trade flows and asset owners, and faster settlement speed.
EIB Vice President Mourinho Félix was quoted Fintechnews Switzerland as saying digital bonds on the blockchain would provide the bank with a fast and more streamlined access to alternative sources of finance to boost finance for projects.
“This transaction marks the EIB’s first step as a pioneer in the use of blockchain technology for the issuance of financial securities.
“The EIB believes this will bring value added for both issuers and investors, while contributing to an innovative, efficient and secure market infrastructure.””
The surge has placed Ethereum with its US $353 billion market cap higher than the total combined market capitalization of the ‘Big Four’ – Australia’s four largest banks – National Australia Bank Ltd (ASX:NAB), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX:NAB) and ANZ Banking Group (ASX:ANZ).
Bitcoin, for comparison, now has a market capitalization of just over US $1 trillion.
Cryptocurrency market has grown sensitive in recent weeks as governments and regulators have focused in on the sector, resulting in choppy and volatile trading.
On Sunday, Bitcoin (BTC) broke above the simple 50-day moving average just above US $57,000, a key barometer for the buyers and sellers relying on technical charts to calculate their next moves.
Bitcoin (BTC) is trading above US $58,000 right now.
Among the other 8 variable-priced digital currencies in the Big 10, ripple (XRP) is changing virtual hands at US $1.59, Binance Coin (BNB) US $627, Dogecoin (DOGE) at US $0.38, cardano (ADA) at US $1.34, ChainLink (Link) at US $40, Stellar (XLM) at $0.56, Litecoin (LTC) at US $274 and Vechain (VET) at US $0.21.
Risky crypto assets have mostly recovered from the mid-April flash crash after investors seemed to cheer on an outlook for a likely divided Congress in the wake of President Biden’s forthcoming proposal to double capital gains taxes for the highest-income Americans.
With the market filled to the brim with froth, the recent market volatility shows how those who ran with their emotions and moved out of the market have been blindsided by how fast it has recovered.