Ethereum surpasses the Bank of America market cap and reaches $3.2K
Ethereum, the second largest by market capitalization, hit $3,200 on November 10 – the highest since August – while Bitcoin surpassed $79,000 following Donald Trump's victory in the US presidential election.
According to CoinMarketCap, the market cap of Ether (ETH) now stands at around $383 billion, up nearly 5% in 24 hours, putting it above Bank of America's market cap of $40 billion.
The high valuation of ETH compared to Bank of America shows a dynamic change in the financial market as the adoption and growth of blockchain technology begins to outpace traditional finance (TradFi).
The move reflects the growing popularity of decentralized finance (DeFi) and crypto assets as the US Securities and Exchange Commission considers listing the first options linked to identifying ETH exchange-traded funds (ETFs).
Bank of America's market capitalization chart currently stands at $346 billion. Source: CompaniesMarketcap
RELATED: Vitalik Explores ‘Data Finance' Potential As ETH Surpasses $3K
ETH increases speed, again inflation changes
ETH saw its biggest weekly price move since May as Bitcoin (BTC) price gradually pushed its limits to reach new all-time highs (ATHs).
However, in the last seven days, the supply of ETH has been increasing rapidly, with an annual inflation rate of 0.424% – previously from early to mid-October.
According to Ultrasound.money, the current ETH burn rate is set at 452,000 ETH, while the production rate has more than doubled at 957,000 ETH, which represents an annual supply increase of 0.42%.
Chart showing ETH supply inflation over the past seven days. Source: Ultrasound.money
RELATED: Ethereum Enters ‘Scarcity Mode', Paving Path for ETH Rally to $6K – Analyst
Community analysis
Sentiment among crypto analysts on X indicates mixed views, but forecasts suggest that they will soon find a new ATH on the back of common enthusiasm for further price action to the upside.
One X user posted his speculation that ETH is set to break the $4,000 barrier, saying that ETH “could very well blow at $4,000.”
Crypto analyst Poseidon posted a similar scenario on X but expected the initial “return before the new ATH”, the ETH price above the $4,300 price mark.
A chart showing the retracement in ETH price prior to the rally to $4,300. Source: X User Poseidon
Related: SEC Approves Ethereum ETF Options
Vitalik introduced “information finance”.
Meanwhile, Ethereum co-founder Vitalik Buterin introduced the concept of “information finance” on November 9.
Buterin explains that information finance is a “discipline” that starts with “the facts you want to know” and ends with the market extracting that information from market participants.
The ETH co-founder advocated for prediction markets to gather insights from the community about future events in a way that protects the public from the influence and influence of the media.
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