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The price of the second-largest cryptocurrency by market capitalization, Etheruem, is now closing in on the $1,500 mark to set a new all-time high as the recent WallStreetBets saga is leading to a push toward decentralized finance (DeFi).
Available data shows that earlier the price of ETH surpassed the $1,450 mark on cryptocurrency exchange Kraken before correcting back to $1,410 at press time. Its lifetime high was near $1,460 reached last month.
The cryptocurrency’s price recently moved higher seemingly in response to recent turmoil in stock markets, where several brokerage platforms like Robinhood have restricted transactions buying specific stocks to curb volatility brought by a Reddit-fueled pump.
The trading frenzy started after WallStreetBets traders started buying up GameStop ()NYSE: GME) after finding out excess shorting compared to the company’s free float. The pump has forced short interest to plunge as the short squeeze has progressed.
Robinhood and other platforms restricting GME buys after its 1,700% surge, however, saw cryptocurrency analysts point toward the decentralized finance (DeFi) space as a solution, as decentralized exchanges operating on it cannot restrict trading.
CoinDesk has quoted Nicholas Pelecanos, head of trading at NEM Ventures, as saying that the saga has only made the case for cryptocurrencies grow stronger. Messari’s Ryan Selkis wrote that the door for BTC and ETH mass adoption has been flung open, adding:
Buy ethereum to secure the fledging decentralized financial system and potentially make a lot of money.
Coinbase’s annual review has also revealed ETH has a store-of-value appeal, as a growing number of institutions have been taking positions in the cryptocurrency. As reported Spencer Noon, an investor at crypto-focused early-stage venture firm Variant, has recently explained why he is bullish on Ethereum.
Noon said the cryptocurrency is showing signs it will “blow past its all-time high,” as it currently has a large number of transactions, its hashrate is at all-time highs, and its network fees are the highest in the space.
The analyst also pointed out that the total value locked on DeFi has been growing, along with the number of daily active addresses, monthly trading volumes at decentralized exchanges, and stablecoins circulating on the network.
Featured image via Unsplash.