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Ether Cryptocurrency Reaches Record High, Briefly Tops $1.5K Amid WSB Trading Buzz
Analysts say the trading movement started by WallStreetBets may boost adoption of ether and other cryptocurrencies.
Updated Sep 14, 2021, 11:04 a.m. Published Feb 2, 2021, 9:51 a.m.
Ethereum's ether cryptocurrency logged a new record high on Tuesday, amid expectations the recent GameStop (GME) trading saga would accelerate the adoption of cryptocurrencies and decentralized finance (DeFi).
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The second-largest cryptocurrency by market value briefly topped $1,500, hitting $1,500.63, during early U.S. trading hours on Tuesday, passing the previous record price $1,459.93 last month, according to CoinDesk 20 data. In recent trading, ETH was at 1.494.26, up 14.28% over the last 24 hours.
The latest leg higher from $1,200 came alongside turmoil in the stock markets, where brokerage platforms like Robinhood have restricted transactions to rein volatility fueled by Reddit-based retail traders' coordinated buying in stocks such as GameStop. The retail frenzy prompted by Reddit forum r/WallStreetBets forced hedge funds to unwind short bets in GameStop, leading to a 1,700% price rally in the 17 days to Jan. 28.
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Crypto analysts believe the restrictive actions could bring more users into the DeFi space, which is dominated by Ethereum's blockchain.
"With investment and trading platform Robinhood halting trading of certain assets like GameStop and Nokia (NOK), and Nasdaq President and CEO Adena Friedman calling for regulations to prevent retail investors from coordinating on social media, the case for cryptocurrencies only grows stronger," Nicholas Pelecanos, head of trading at NEM Group, told CoinDesk.
According to Messari's Ryan Selkis, the door for mass adoption of bitcoin, ethereum, DeFi and Web 3.0 assets has been flung open. "Buy ethereum to secure the fledging decentralized financial system and potentially make a lot of money, but also to tell your bank to f**k off," Selkis noted in Thursday's daily market brief.
Also read: What Does GameStop Mean for Cryptocurrencies?
Ether also has a store-of-value appeal, and a growing number of institutions have taken positions in the cryptocurrency, according to Coinbase's recently released 2020 annual review.
While ether breaking a new lifetime high, bitcoin is down by near $7,000 from its record price of $41,962 reached on Jan. 8. Bitcoin is up about 18.59% this year, while ether has added more than 97%.
UPDATE (Feb. 2, 17:00 UTC): Updates to add new record, briefly topping $1,500.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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