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Why Is Ethereum Showing Such Staggering Growth?

In this, we explore reasons why Ethereum might be showing nearly 40% differences between weekly highs and lows recently.

Ethereum (ETH) has been enjoying surging values despite the seemingly non-volatile state of Bitcoin, reaching a new record high this year at $322 USD.

Over the past week, the leading altcoin has shot up, moving from a low this week of $234,85 USD to a high of $323,02 USD, boasting a staggering 37.5% difference.

The Increase Of The DeFi Market

There are several factors which could be pointing to the increase. One of them, which is possibly attributing to Chainlink’s skyrocketing price at the moment too, is increasing growth of the Decentralized Finance (DeFi) market. The positive sentiment surrounding DeFi as well as Ethereum 2.0 is setting the market abuzz with optimism.

Since May, the value locked in DeFi protocols has increased by nearly four times to hit a figure of $3.75 billion USD. Other popular protocols (such as Compound, Maker, Aave and Synthetic) have also experienced swelling volumes of users for the past month. Research leader at the institutional trading platform TradeBlock John Todaro commented that the growth of DeFi might continue to boost the price of Ethereum:

The Futures Market and Ethereum’s Surge

Deribit, an exchange focused on Bitcoin and cryptocurrency futures and options trading, also offered that it had seen massive increases in the volumes for Ethereum options and open interest. The exchange tweeted that it had hit a new record high for ETH options:

Whether this evolves to a long-term rally remains to be seen. Given the general sentiment of the market, it’s possible that Ethereum will enjoy a positive trajectory for some time to come.