Ethereum, the second-largest cryptocurrency by market capitalization, has reached a new all-time high of $4,372 on Wednesday, according to data from CoinMarketCap.
The new record comes amid a strong rally in the crypto market, which has seen Bitcoin, Bitcoin Cash, and Bit Digital also post significant gains in the past 24 hours.
Ethereum has been on a tear since the beginning of the year, fueled by the growing popularity of decentralized finance (DeFi) applications, the launch of Ethereum 2.0, and the anticipation of a major network upgrade called EIP-1559, which is expected to reduce the supply of ether and improve its usability.
Ethereum’s market cap has now surpassed $500 billion, making it more valuable than Visa, JPMorgan, and Berkshire Hathaway. Some analysts believe that Ethereum could eventually flip Bitcoin as the dominant cryptocurrency, as it offers more functionality and innovation.
However, Ethereum also faces some challenges, such as scalability issues, high gas fees, and competition from other smart contract platforms. Moreover, the crypto market is notoriously volatile and subject to regulatory uncertainty, which could pose risks for investors.
