Binance CEO Changpeng Zhao has shared the reason why Ethereum's price is surging lately, which has been performing well in the market, and it is because of NFT or non-fungible tokens that were traded. Ethereum is experiencing one of the largest rises in cryptocurrency history as it now aims to topple Bitcoin from its number one spot.
Ethereum is rising in the market and nothing is stopping its current valuation and increase, and Binance CEO said that it is because of its popularity among NFT purchases.
Before this, Ethereum (ETH) and Bitcoin (BTC) would both surge, and fall back to their previous prices after the so-called trend has already lowered to its prices before the increase. However, it was never before seen that Ethereum is outperforming Bitcoin in the recent trends, and has grown to its all-time record of $3,000.
Ether may not be as expensive as Bitcoin now, but current performance and predictions are now speculating that it may come close to BTC's thresholds and one day surpass the popular cryptocurrency. However, that is a long way for Ethereum to travel, especially as the current valuation is not close to half of Bitcoin's current market value at $57,000.
Why is Ether Booming? It's Because of NFT says Binance CEO
Dogecoin's surging popularity is pushed to the side because of Ethereum's rise, especially during the past week which has recorded a record-breaking surge for the decentralized, open-sourced blockchain. Currently, Ethereum's blockchain is the most used in the market, and it also is what NFTs have been using over recent events.
According to Bloomberg's interview with Changpeng Zhao, the Binance CEO regarded that this trend is because of NFTs and that these tokens mostly use the blockchain by Ethereum, thus the increase in valuation. While NFT sellers and buyers decide on which cryptocurrency to use for the trade, Ethereum's blockchain has been the most used to date.
NFT's booming business of promoting digital art that was created or curated by aspiring artists has been rampant in the previous weeks and has been giving cryptocurrencies a chance to shine more. The age of cryptocurrency has come, and its blockchain mode of payment has become popular for a foolproof purchase made online.
How Much is Ethereum Now?
According to Coin Market Cap (as of 7 PM May 5), Ethereum is at $3,486 per piece, facing a 4.13 percent increase over its performance. The cryptocurrency's value plays at around $3,200 for its lowest and $3,500 for its highest value. ETH still stands at the second rank, which has a fully diluted total market cap of $403 billion.
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Written by Isaiah Richard
