Ethereum hits $3.2K, surpassing Bank of America market cap
11/11/2024 18:04
Ethereum reached $3,200, driven by increased DeFi adoption and Bitcoin’s surge above $79,000.
Ethereum, the second-largest cryptocurrency by market capitalization, hit $3,200 on Nov. 10 — its highest since August — as Bitcoin surpassed $79,000 following Donald Trump’s victory in the United States presidential election.
According to CoinMarketCap, the market cap of Ether (ETH) now stands at around $383 billion, up almost 5% in 24 hours, putting it roughly $40 billion above Bank of America’s market cap.
ETH’s high valuation compared to Bank of America shows a shift in financial market dynamics as blockchain technology adoption and growth begin to exceed traditional finance (TradFi).
The shift signals the rising popularity of decentralized finance (DeFi) and crypto assets as the US Securities and Exchange Commission considers listing the first options tied to spot ETH exchange-traded funds (ETFs).
Chart showing Bank of America’s market capitalization currently sits at $346 billion. Source: CompaniesMarketcap
Related: Vitalik explores potential of ‘info finance’ as ETH tops $3K
ETH gains momentum, turns inflationary again
ETH has witnessed its greatest weekly price action since May as Bitcoin (BTC) price progressively pushes the limits to reach new all-time highs (ATHs).
However, over the last seven days, ETH supply has been quickly increasing, at an inflationary rate of 0.424% a year — previously deflationary in early-to-mid October.
According to Ultrasound.money data, the current yearly ETH burn rate sits at 452,000 ETH, while the issuance rate is more than double that at 957,000 ETH, resulting in an annual supply increase of 0.42%.
Chart depicting the ETH supply turning inflationary over the last seven days. Source: Ultrasound.money
Related: Ethereum enters ‘scarcity mode,’ paving the way for ETH rally to $6K — Analyst
Community analysis
The sentiment among crypto analysts on X indicates mixed views but shared anticipation for further price action to the upside, with predictions of a new ATH soon.
One X user posted their expectation that ETH is set to break the $4,000 barrier, stating that ETH “will most likely breeze through $4k.”
Crypto analyst Poseidon posted a similar trajectory on X but expected an initial “pullback before the new ATH,” with ETH price exceeding the $4,300 price mark.
Chart depicting a pullback in ETH price before pumping toward $4,300. Source: X user Poseidon
Related: SEC mulls approving Ethereum ETF options
Vitalik introduces “info finance”
Meanwhile, Vitalik Buterin, the co-founder of Ethereum, introduced the concept of “info finance” on Nov. 9.
Buterin explained that info finance is “a discipline” that begins with “a fact that you want to know” and ends with a market that “optimally” elicits that information from market participants.
The ETH co-founder advocated for prediction markets to collect insights from the community about future events in a way that offers public expectation without media sensationalism or influence.
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