When it comes to digital currencies, there is no doubt that Ethereum is one of the hottest topics in the space right now. The native token of the Ethereum blockchain, Ether (ETH), has seen its price skyrocket in recent months, reaching all-time highs above $1,700.
So, what is driving this incredible rise in Ethereum’s price? Let’s take a look at some of the key factors.
Increased Adoption of Ethereum
One of the main reasons behind Ethereum’s rising price is increased adoption by businesses and users.
Ethereum’s smart contract platform is being used by an increasing number of organizations to build decentralized applications (dApps). These dApps are powered by ETH and often require users to hold the token to interact with them.
As more businesses build dApps on Ethereum, demand for ETH will continue to increase. This increased demand is one of the key drivers behind Ethereum’s rising price.
Positive Regulatory Developments
Another factor that is driving Ethereum’s price higher is positive regulatory developments around the world. In particular, Ether has benefited from positive developments in the United States.
The US Securities and Exchange Commission (SEC) recently announced that it would allow ETH to trade on regulated exchanges. This is a big deal because it gives institutional investors greater clarity and confidence when buying ETH.
As a result, we are seeing more institutional money flow into ETH, which is driving up its price.
In addition, the US Commodity Futures Trading Commission (CFTC) recently announced that it would allow ETH derivatives to be traded on regulated exchanges. This is another big development that will attract more institutional investors to ETH and help drive up its price.