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Ethereum briefly surpassed $ 4,000 amid growing popularity of NFT

The price of the Ethereum cryptocurrency surpassed $ 4,000 yesterday amid a major update expected within a month, as well as the growing demand for non-fungible tokens (NFT).

Source: coindesk.com

Source: coindesk.com

The second largest cryptocurrency rose to nearly $ 4,027 on Friday, approaching the maximum price recorded in May. Upon reaching the psychological mark, the digital asset nevertheless fell somewhat in price. Since the end of July, the cryptocurrency has risen in price by more than 50%, which is associated with the London hard fork and, in particular, the EIP-1559 proposal.

Other growth drivers include the continuing interest in decentralized financial services (DeFi) and NFTs, the latter most often using the Ethereum network. The popularity of NFT is constantly growing: for example, the large marketplace OpenSea showed a 10-fold increase in sales in August compared to July.

However, other digital assets are also growing. The seventh largest cryptocurrency, Solana, gained 68% over the week, while Polkadot gained 27% (according to Coingecko). The total capitalization of the cryptocurrency market reached $ 2.36 trillion, although as of July 20, this figure was only $ 1.24 trillion.

“Ethereum’s breakout continued overnight to levels last seen in May and cascaded to Cardano, Ripple and Polkadot.”– said Martha Reyes-Hulme, a spokesman for the Bequant exchange yesterday.

Bitcoin failed to reach the growth rates of its younger competitors, although it continued to show positive dynamics, again breaking the $ 50K mark on Thursday. Since then, it has relatively stabilized at this level, having spent about a week below this mark. Experts believe that in the future, the largest crypto asset will still be able to return to the April maximum and rise in price to $ 60 thousand.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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