Ether Breaks Above $3K for the First Time Ever

The second-largest cryptocurrency by market capitalization, Ether (ETH) surpassed the mark of $3,000 on Sunday for the first time in history after setting multiple all-time highs during the week.

Ether Breaks Above $3K for the First Time Ever

Currently, ether is trading around at $3,050, up more than 6% in the past 24 hours and over 25% compared to the last seven days. Ether is now up about 300% on a year-to-date basis versus a 95% rise for bitcoin.

The latest ether’s impressive gains came as the demand for the second most valued cryptocurrency has soared.

The market capitalization for decentralization finance (DeFi), recently hit above $100 billion, with the major DeFi projects being built on the Ethereum blockchain and there are over $68 billion worth of total value locked in DeFi, according to the data found from DeFi Pulse.

Data from CoinMetrics shows that the number of active addresses recently surged to a new all-time high of 771,000, surpassing the previous record of 739,000 set in November.

The number of daily transaction counts along with DeFi activity on Ethereum's blockchain has increased by 22% to 1.376 million this year. Ether's growth also came as the Ethereum blockchain undergoes the Eth 2.0 upgrade, which will switch the Ethereum blockchain to a proof-of-stake (PoS) consensus from the current proof-of-work (PoW) consensus mechanism.

Vitalik Buterin, the co-founder of ethereum, recently gave a presentation on the development roadmap of Ethereum after its merge to PoS including the long-awaited feature, sharding, which will expand Ethereum’s capacity to process transactions by splitting its database into 64 new mini-blockchains, thus addressing the congestion issues that currently plague the blockchain.