Ethereum hit an all-time high of $3,456.57 as the cryptocurrency extends a rally that has seen its price gain around 360% this year. Ethereum’s price hike represents the rise of Blockchain technology, as the increase in price is considered a response to more and more Defi applications being built on the Ethereum Blockchain.
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With smart contracts and other high-tech applications continually being developed amidst the rise in blockchain on the Ethereum network, the upward trend of crypto price is a tangible representation of mass blockchain technology adoption.
Below is a commentary from Phillipe Bekhazi, a leading crypto and blockchain expert, giving his unique insights on the outlook for Ethereum and the significance of the price hike.
Philippe Bekhazi, CEO of Stablehouse and XBTO
Why The Hike In Ethereum Price
We are seeing a significant Eth price increase as Ethereum is the basis for a majority of the applications and decentralized financial solutions in the crypto space.
We have seen the emergence of what seems to be the '3rd' killer app in crypto. Decentralized finance: or 'credit'. Basically, financial tools that produce consistent yield, and have a structured way of maintaining returns. The first being BTC that is taking a role more as the 'new' digital gold.
The second being stablecoins, which allow for non-volatile government currencies to benefit from most of the benefits of decentralized transfer and store of value. Ethereum is also about to launch its new staking and fees version that will allow it to do faster transactions and allow it to enable lower-cost transfers.
Future Trends
I believe the surge in prices is more of a trend towards the asset and seeing its utility grow. For new investors, it's a unit bias selection over BTC. The adoption of blockchain continues on a straight exponential path. We at XBTO, XBTO ventures, and Stablehouse have been anticipating this for years.
We are no advisors, but I would not be surprised if ETH doubles this year.
It seems to us, there will be no stopping the complete disruption of financial institutions over the next 2 decades, just like consumer sales, media and telecoms were transformed by the introduction of the world wide web. Our entire private investment strategy benefits from this evolution.
