Ethereum soars ahead of major upgrade, raising Bitcoin and the price of BNB, Cardano, Polkadot and Solana

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Ethereum, the second largest cryptocurrency after bitcoin, is skyrocketing as traders stack up in cryptocurrency ahead of a closely watched upgrade known as London.

The price of Ethereum has risen 8% in the past 24 hours, with its rally helping the price of bitcoin to rise slightly and sending Ethereum’s biggest rivals BNB, cardano, polkadot and solanaup between 3% and 10%. .

The combined cryptocurrency market, currently dominated by bitcoin and ethereum, has added nearly $ 500 billion since its July lows.

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The price of ethereum has skyrocketed in the much-anticipated upgrade race, with the ethereum surging … [+] around $ 3,000 per ether token.

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The Ethereum upgrade in London, designed to improve network efficiency and predictability of fees, is slated to go live around 8 a.m. EDT and is part of Ethereum’s long-awaited abandonment of the proof of model model. Energy-intensive work used by bitcoin at proof of stake allowing users to generate new ether tokens through their existing holdings.

The London upgrade will also see some of Ethereum’s ether tokens destroyed or “burned,” a change some say means Ethereum is able to further close the gap on the $ 700 billion market cap. dollars of Bitcoin as its tokens become rarer. Ethereum currently has a market cap of around $ 300 billion. Earlier this year, Ethereum co-founder Vitalik Buterin said the upgrade could mean Ethereum becomes more “sound” than Bitcoin.

The price of Ethereum, up 500% from the same period last year, has outpaced bitcoin and most other major cryptocurrencies in recent months as the decentralized finance (DeFi) market and non-fungible tokens (NFT) explode.

DeFi, the idea that loans and insurance can be replicated by software protocols removing banks, and NFTs, unique digital crypto tokens tied to media, have both become multibillion-dollar markets over the years. last two years. Almost all DeFi and NFT funds are currently based and traded on the Ethereum blockchain.

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The price of Ethereum has climbed over 500% in the past 12 months, leaving bitcoin in the dust.

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However, some of Ethereum’s competitors, including Binance’s BNB, cardano, polkadot, and solana, which supporters say are already more technologically advanced than Ethereum, are hoping to gain DeFi and NFT market share.

“Just like in 2017, Ethereum has once again proven to be at the epicenter of crypto market activity,” said Pete Humiston, director of the Intelligence division of Kraken, the US bitcoin exchange and crypto, in a report released this week.

“DeFi and the NFT space, two robust industrial sub-sectors worth tens of billions of dollars on their own, take place almost exclusively in the Ethereums ecosystem today. This may explain why demand has been so resilient. Ether has been outperforming all this year. , and we see no reason for that to change in the short term. “

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