In the middle of the bull run, which we are currently witnessing, almost all relevant projects and their cryptocurrencies are growing. However, some stand out and prove that they really deserve the attention of investors. Ethereum with its cryptocurrency Ether (ETH) can certainly be considered one of them.

Ether is the second-largest cryptocurrency, after Bitcoin, by total market capitalization ($ 400 billion). In recent days, it has been showing us its strength and breaking one record after another. In 2 days, it managed to cross the $ 3,000 mark for the first time and set a new ATH that exceeded the $ 3,500. The question remains, are these values ​​final, or will ETH show us even more in this bull run?

According to coinmarketcap data, ETH has grown by more than 400% since the beginning of the year, significantly outperforming Bitcoin, which gained "only" 100% over the same period. Many analysts believe that ETH can enjoy a similar growth in the coming months and see the progress of the project and several other factors as the main drivers of this growth. So let's look at what caused the astronomical rise in the price of ETH and what will push it higher in the near future.

The first significant factor is the increasingly frequent mentioned interest of institutional investors. In just two last weeks, four new funds have debuted on the Toronto Stock Exchange, making it much easier for institutions to access cryptocurrency investments. According to Ark Invest, an investment management company, interest in ETH has even significantly outpaced BTC.

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Ethereum's strength lies in its support of smart contracts, which enables the emergence of new projects and even whole new industries within the crypto industry. Those that attach subsequently pull up the price of the ETH itself. A good example is decentralized finance (DeFi) projects as well as the relatively new area of ​​non-fungible tokens (NFT). The two largest DeFi players have recently surpassed the $ 1 billion total locked value. In addition, the NFT is expanding the network's capabilities to the arts, and one of the record holders is artist Mike Winkelmann, who has sold his work for more than $ 69 million.

Of course, the expected changes and improvements of this network also have a positive effect on the ETH price. One of the most recent is, for example, the EIP-1559 update, which should help reduce fee volatility. Part of the fees should be burned, which will result in the deflationary nature of this cryptocurrency. At the same time, it paves the way for the introduction of using the average transaction price in the network. Ethereum is currently in the process of moving to a completely new system of operation - Proof-of-Stake (PoS). In particular, it will contribute to greater scalability and energy efficiency.

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The growth of Ether, which we are monitoring, is therefore probably not final at all and, unlike other projects, is also based on real factors. This is not a growth similar to Dogecoin, which was originally created as a joke and is now incomprehensibly credited with thousands of percent in value. Many analysts agree that we could test up to $ 5,000 in the near future. Some aren't even afraid to talk about the $ 10,000 level. According to many, Ethereum is waiting for a very interesting period and we are looking forward to what the home network of Dollero Technology will show us.