Why has the price of Ethereum surged?
1. Strong rebound in fundamental demand:
The blockchain applications behind Ethereum, especially in the decentralized finance (DeFi) sector, are rapidly expanding. An increasing number of businesses and developers are choosing Ethereum as the infrastructure for decentralized applications (dApps), leading to a significant increase in transaction volume and driving up the price. This demand is not only short-term but is showing a long-term growth trend as blockchain technology matures and the DeFi ecosystem continues to expand.
2. Macroeconomic situation:
The uncertainty in the global economy, particularly regarding inflation and changes in monetary policy, is driving capital into the digital currency market. Investors see Ethereum as a tool to combat inflation and safeguard assets, resulting in more funds flowing into the crypto market, thereby driving up digital assets like Ethereum.
3. Binance's “pump mode” effect:
Recently, Binance launched a new coin and adopted a “pump mode” by reducing transaction fees to negative values, attracting a flood of capital inflow. This move not only boosted the new coin's price but also triggered market attention towards mainstream coins like Ethereum, further accelerating Ethereum's price increase.
