Ethereum’s journey to $3,000 has seen the light of day as the second-largest cryptocurrency based on market capitalization is up by 9.53% in the last 24 hours to trade at $3,286 at the time of writing, according to CoinMarketCap.
This record-breaking move has not been seen in ETH’s six-year journey, and this momentum is causing Bitcoin’s dominance to fall. Bloomberg Crypto acknowledged:
“Bitcoin’s domination of total cryptocurrency market value is declining. That’s because momentum for Ether and other tokens is drawing interest from a variety of investors.”
Bitcoin has been experiencing sharp corrections in the current bull run. For instance, the leading cryptocurrency recently hit a 6-week low of $48.5K based on speculations that U.S. President Joe Biden’s administration would increase capital gains taxes.
Nevertheless, Ethereum, together with other tokens like Dogecoin (DOGE), has experienced relative corrections in its bull cycle. For instance, Dogecoin, which was initially invented as a “joke currency” based on the “Doge” meme featuring a Shina Inu dog, recently defied many odds to make it to the top-ten and currently sits sixth with a price of $0.38.
Ethereum’s momentum is expected to continue
Some analysts believe that Ethereum’s uptrend will continue. For instance, market trader Holger Zschaepitz recently noted:
“Ether could hit $10k. Ethereum’s market cap has risen to ~30% of Bitcoin’s over recent weeks. During the last market cycle. Ethereum broke this level and headed as high as 80% of Bitcoin’s value.”
Moreover, market analyst Lark Davis believes that Ethereum will have cemented its status as a deflationary currency as the year closes because its value will continue to increase with time.
He also expects Ether to be running on the proof-of-stake consensus mechanism, which allows for the confirmation of blocks to be more energy-efficient and requires validators to stake ETH instead of solving a cryptographic puzzle.
With Ethereum having hit the psychological price of $3,000, time will tell whether ETH will continue with its record-breaking trend in 2021.
Image source: Shutterstock