Ethereum gained 8% and the price approached $ 4,000

Ethereum is up 8% in value as the price slowly approaches $ 4,000 again thanks to increased interest in NFT and DeFi as we read more about our latest ETH news today.

Three months ago, Ethereum was sold for less than $ 2000 after crashing from its record high of $ 4,350 in May. The ETH price has recovered in the past 24 hours and, according to data from Nomics, exceeded the price level of USD 3800 for the first time since the beginning of September. There’s no reason for the price hike today as the log is in the middle of updating while Elon Musk hasn’t tweeted about it and the SEC isn’t suggesting an Ethereum ETF, but if you zoom out there is a trend spike. The ETH price has increased more than 90% in the last year and there are at least four factors that contribute to the price increase.

First, the network’s core developers have made great strides on Ethereum 2.0 and switched the blockchain from its current proof-of-work algorithm to a proof-of-work. This move replaces miners with “staking” validators to process transactions and provide security, resulting in faster transactions and lower fees, which is a big problem for the network being congested. There are a number of reasons for the congestion, but the surge in DeFi last fall and growing interest in NFTs are among the main reasons. DeFi comes from the ETH network, and while Solana, Binance Smart Chain, and others created a chain compatible with peer-to-peer credit and trading applications, ETH is responsible for two-thirds of the pending value surrounding DeFi .

NFT also appeared on the Ethereum network before it was applied to other chains such as Flow and Stacks. The largest NFT marketplace, OpenSea, has a monthly trading volume of billions, while Axie Infinity has a monthly trading volume of half a billion. Ethereum is the main port for DeFi, NFT, games and other applications, which is why the demand for this coin is so great. However, the slowdown in supply due to the network upgrade resulted in the transaction fees going to the network’s miners instead, but going to a private wallet to be destroyed. So with every new block created, a bit of ETH is lost and the rate of inflation slows down, which helps to boost the price.