The second largest cryptocurrency on the market, Ethereum set another record, this time, it has exceeded $ 2,000. The native cryptocurrency of the Ethereum blockchain continues its bull run.
Ether experienced a recent spike in its price. It reached $ 2,017, before settling at $ 2,009 on the major exchanges in the market. Reaching a growth of 5% in the last 24 hours.
The rise and growing popularity of ETH should not be overlooked. At least three areas of growing demand are driving the rise in the price of Ethereum.
The first, related to decentralized finance (DeFi), participation in Ethereum 2.0. And finally, a recently formed and institutionally focused Ether market on the Chicago Mercantile Exchange (CME).
Unsurprisingly, the altcoin’s rally also coincided with Bitcoin’s own performance.
Meanwhile, CoinShares strategists believe that in addition to Bitcoin, even Ethereum has become the most popular asset for institutional investors of late.
Furthermore, Messari co-founder Qiao Wang said that ETH has the potential to reach $ 5,000. And that there is “absolutely no reason” for traders to sell long-term shares now.
After Ethereum set another record, the cryptocurrency is currently trading at $ 1,980 based on data from our Crypto Online tool.
Binance’s Brief Pause in ETH Withdrawals Sparked Community Confusion
Binance experienced an issue with its withdrawals of ETH and all ERC-20 assets on Friday. Users were unable to access any of their Ethereum-based assets for about an hour.
The pause came suddenly, as the exchange’s Twitter account notified users that Binance had “temporarily suspended withdrawals of Ethereum-based tokens to address a congestion issue.”
Binance assured that “the funds are SAFU”, but did not provide further details. An hour later, he said the withdrawals had apparently been restored. But the exchange did not attempt to explain what led them to pause such a critical piece of its infrastructure.
The somewhat vague motivation for the ‘congestion issues’ seems to have indicated that Ethereum’s high gas fees had something to do with the pause.
The community was skeptical of such an explanation. A moderator in the Harvest Finance community, making a connection to the rise of Binance Smart Chain:
“The congestion at ETH is no worse today than it has been in recent weeks. So the timing by Binance could be considered suspicious when trying to snatch Ethereum’s mindshare from the BSC chain.
According to data from Etherscan, average gas prices are now lower than they were in early February. Which makes Binance’s current statements even more confusing. Either way, congestion alone shouldn’t be a major problem for an exchange.
Suspicions in the community
These circumstances raised suspicions about Binance’s true motives, with popular analyst Hasu suggesting that it was a “declaration of war on Ethereum.”
While the comment was posted before the recalls resumed, the wider community remains confused as to what exactly happened.
Instability in Binance makes cryptocurrency balance disappear for its users
Some investors were caught off guard by Binance scheduled maintenance on Friday afternoon. With the exchange’s cryptocurrency wallet maintenance, users claim to have found their “zero account.”
In addition to the balances that could not be consulted, complaints were made about delays in transferring cryptocurrencies to Binance. According to the exchange’s statement, the problems were actually caused by an instability in the AWS network, which occurred during the update.
With an expected duration of just one hour, investors reported issues with balances, withdrawals and transfers related to Binance. In a statement sent by Binance, the company testifies that the activities normalized in the late afternoon.
Shortly after announcing the update, Binance said that the platform has normalized its activities. The company apologized to users for the instability, which affected other cryptocurrency platforms around the world.
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