Ethereum is up more than 1,300% over the past year, hitting a new All-Time High (ATH) above $3,500 less than a week ago. The world’s largest altcoin has recently been stealing the show from Bitcoin, having left many people wondering: Why is Ethereum soaring to new highs?
Both Bitcoin and Ethereum have experienced a successful start to the year, both hitting new ATHs. Bitcoin has seen massive growth, and many large corporations have been adding Bitcoin to their balance sheets, in the hopes that it will prove as a good hedge against inflation. While Bitcoin is mainly being used as a store of value, Ethereum supports the whole Ethereum blockchain, where many different types of transactions occur.
In a recent interview with Bloomberg, Binance CEO, Changpeng Zhao (CZ), said that the user demand for Ethereum could be a factor, influencing prices to rise. The recent demand for Ethereum is largely due to the recent craze in Non-Fungible Tokens (NFTs), as people are flocking to buy the digital art which is essentially pushing the price of ETH higher.
“All of these use cases are moving right now and people need the other coins to do this type of new transaction,” Said CZ . “Ethereum is one of those clear examples. That’s probably why Ether is going up.”
Ethereum is currently trading at $3,366.
Feature image by ThaiBitcoin from flickr