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Ethereum Runs The Show Above $1.6K As Smart Contract, DeFi Cryptos Outshine Bitcoin

February 3, 2021 9:47 pm
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Ethereum Runs The Show Above $1.6K As Smart Contract, DeFi Cryptos Outshine Bitcoin

The second-largest cryptocurrency by market cap Ethereum (ETH) is leading the cryptocurrency rally and posted yet another all-time high of $1,689 on Wednesday evening.

What Happened: ETH traded 10.84% higher at $1,683.32 at press time, while the top cryptocurrency by market cap Bitcoin (BTC) price traded 5.49% higher at $38,074.95.

Grayscale Ethereum Trust (OTC:ETHE) and Grayscale Bitcoin Trust (OTC:GBTC) closed 6.66% and 3.42% higher at $18.89 and $38.06 respectively on Wednesday.

Decentralized finance, or DeFi, cryptocurrencies traded in the green at press time. Uniswap (UNI) up nearly 13% at $21.28. Aave was up 36% at $408.73, and SushiSwap (SUSHI) traded 18.59% higher at $14.87. 

So-called ETH killers also saw upwards momentum as Polkadot traded 22.75% higher at $21.01, and Solana jumped 13.37% to $5.89 at press time.

Why It Matters: The rise in ETH has buoyed major DeFi tokens as well as its rival currencies. 

“Ether made a significant push [since Tuesday] and that is causing projects linked to the DeFi space – as well as DOT, which is seen as a potential ‘Ethereum killer’ – to appreciate and aim for new all-time highs, “ according to OKEX’s senior content editor Hunain Naseer, as reported by CoinDesk.

ETH has also attracted institutional interest according to cryptocurrency investor Ryan Sean Adams.

The launch of the Chicago Mercantile Exchange’s new ETH futures contract this month will bring more institutional investors into the cryptocurrency, as per CoinDesk. 

The surging price of ETH has also given impetus to the options market, as per the Deribit exchange.

Key metrics indicate that the cryptocurrency fervor particularly in BTC could sustain for the time being.

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