- ETH has jumped overnight to mark new all-time high following reports of the European Investment Bank (EIB) issuing two-year bonds on its blockchain.
- This wouldn’t be the first time the Ethereum blockchain has been used to issue bonds – it is viewed as a more efficient and cheaper option that could become the standard.
On Tuesday, Ethereum (ETH) marked a new all-time high after gaining as much as 10% to reach $2,675. The second-largest cryptocurrency has since widened its market gap after climbing above $300 billion in market cap. Third-ranked Binance Coin (BNB) is still struggling to reach $90 billion. At the time of press, ETH prices have retracted to around $2,600.
The price gains came a few hours after Bloomberg reported that the European Investment Bank (EIB) plans to issue a two-year 100-million euro digital bond on the Ethereum blockchain. Without naming its source, it further confirmed that Goldman Sachs, Banco Santander, and Societe Generale would lead the sale.
This would not be the first time that digital bonds are offered on the Ethereum blockchain after Societe Generale – Europe’s seventh-largest bank – issued 100 million euros of bonds as a security token on the blockchain back in 2019.
Analysts including Raoul Pal, have taken this as an acknowledgment by the bank on how solid the Ethereum financial infrastructure is. Additionally, “It shows how massively dominant ETH currently is for use cases” the financial media guru stated on Twitter.
ETH $3K bullish case
Since the breakout, market analyst Rager has pointed out that the next key level for the digital asset is $3,000. For much of the year, ETH has been outperforming BTC. A look at the last 7 days, ETH is up by 12 percent while BTC is down by 2 percent. As a result, ETH dominance has been steadily growing. At the time of press it stands at 14.7 percent, while BTC has sunk just under 50 percent.
A few weeks ago, the network underwent a major upgrade- the Berlin update. The update has been critical to the network as transaction fees, security and scaling issues threaten its market dominance. The next upgrade is the London hard fork, which is anticipated to be even bigger, with a proposal to reduce the supply of ether.
In addition to the technical upgrades, the ETH exchange balance continues to plummet. This has recently reached a new two-year low. It not only signals the retail bullish sentiment but also increased institutional interest.
Bulls hope that in the mid-term to long term, the digital asset can gather the same momentum Bitcoin did as a result of institutional interest.
Though Ethereum is already doing well all on its own, woes involving its rival Binance Smart Chain (BSC) could further strengthen its bullish case. In the last couple of hours, there has been a suspected hack on one of BSC’s projects that could impact roughly $50 million in funds. Uranium Finance, the project involved says that it is currently working with Binance to try and recover the funds.
