Ether (ETH) has more than doubled in value this year with strong fundamentals and an increasing number of projects being built on the network. Here are five signs of this week that the time of Ethereum has finally come.
Accredited investors are currently paying a 220% premium to buy Ether through Grayscale’s Ethereum Trust.
The price of a single share in the Ethereum Trust is currently traded for $ 81.50, although one share represents Ether with a value of only $ 25.46. Yesterday the premium was even higher, at 312%.
Grayscale Ethereum Trust has assets under management of $ 154.5 million and is intended for institutional investors who are willing to pay a premium to prevent them from investing directly in cryptocurrency with associated custody and regulatory issues.
Some private investors also pay more than the odds. Coinbase, a major fiat gateway used by retail investors, has traded Ether with a premium of $ 1 to $ 1.50 on non-fiat exchanges, which may indicate that additional fiat is coming on the market.
The first study to investigate the potential of Ether as an “hedge, diversifier or safe haven asset” on an intraday basis has been released by San Jose State University. It examined the data between December 2017 and December 2018 and concludes that:
“Ethereum crypto currency is a hedge against the US stock and gold markets. Ethereum also often acts as a safe haven for gold markets. When it comes to currency markets, we document that Ethereum is a diversification for the US dollar. “
More research over longer periods is needed to confirm the findings in other scenarios, but the news will be noticed by investors who want to diversify stocks, gold or Bitcoin (BTC).
JP Morgan, the largest bank in the United States, is in the process of merging its Quorum blockchain division with development studio ConsenSys – founded by co-founder of Ethereum, Joe Lubin.
The bank built its own Quorum blockchain using the Ethereum network. It is used for the interbank information network of 365 banks and was used as the backbone for JPMorgan’s digital currency.
If this succeeds, the deal is likely to be announced within six months, with speculation the bank could invest further in the Ethereum ecosystem.
The Ether price has risen seven weeks in a row and peaked at around $ 274 yesterday – the highest price since July last year.
The longest weekly winning series for Ether was from January to March 2017. If the Ether prize turns green this week and next, this is a record stop (although it has risen much more strongly in the past).
The price increase was accompanied by increased network use. According to Glassnode data, the total daily gas consumption is just the highest point since September last year.
The number of active Ethereum addresses has grown by 21.5% last week and transactions have increased by 13.2%.
The amount of funds decentralized in decentralized financing applications has just reached $ 1 billion for the first time (and currently stands at $ 1.15 billion). Ether accounts for around 70% of the total and Bitcoin’s Lightning Network is the only project in the top 20 that is not built on the Ethereum blockchain
Kain Warwick, founder of the third largest DeFi project, Synthetix told Cointelegraph that the success of DeFi has helped people understand the potential of Ethereum and the large number of projects built on the blockchain, which has helped combat of “wrong prices in the market”.
“The idea that Ethereum is replicating these traditional financial applications on a decentralized platform has finally crossed the gap and has come so far that people understand,” he said.
“Once you start looking, it becomes clear how many things are happening at Ethereum. If you compare it to something like Bitcoin, they are just orders of magnitude larger. “
Warwick quickly added that he is also bullish about Bitcoin and thinks it is a very valuable asset.
“But in terms of what facilitates all this activity that makes people enthusiastic about crypto again? It is Ethereum. That is where everything happens. All cool projects and interesting applications come from Ethereum and it is difficult to see how that does not lead to awareness and this revaluation of the value proposition. “