Ethereum has broken the pyschological milestone of $2,000 for the first time in history.
Ethereum, the second largest cryptocurrency by marketcap, has seen close to 170% gain in 2021 so far, largely being fueled by the the overall crypto sentiment and the DeFi boom.
SEE ALSO: 87% of Bitcoin Investments in 2020 Came from Institutional Investors, Dominated By Asset Managers, Latest Grayscale Report Reveals
The new milestone comes a few hours after Binance, the largest exchange by volumes globally, temporarily suspended Ethereum trades due to demand that caused congestion on the exchange.
Following on the footsteps of Bitcoin success, GrayScale, the world’s largest digital asset custody service, has been accumulating huge swaths of ETH over 2021.
As of this writing, GrayScale has bought over $344 million in Ethereum in the last 2 weeks alone with the current ETH holdings value (3.16 Million ETH) now totalling $6.2 billion.
The largest buy so far came on February 12, 2021 when the digital asset manager purchased 52, 730 ETH for $1, 770 each.
When you combine the above accumulations with the booming DeFi space and the fast growing NFTs ecosystem, both of which predominantly run atop the Ethereum blockchain, it is not difficult to see why this milestone was going to be broken.
ETH hitting $2,000 validates the scalability of applications around DeFi and NFTs and its continued sticky growth as a leader in decentralized applications.
RECOMMENDED READING: Non-Fungible Tokens (NFTs) are Seeing a Big Boom with Over $100 Million Sold in 2021 So Far
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