Cryptocurrency Market Surges as Ethereum Nears Record High

Crypto markets are experiencing a surge today, August 13, with Ethereum (ETH) showing significant strength, moving closer to reaching levels not seen in four years. The total market capitalization for all cryptocurrencies is currently at $4.2 trillion, marking a 2.5% increase in a single day, hitting a new all-time high as per CoinGecko data.

Bitcoin (BTC) is currently trading at approximately $121,470 at the time of writing, with a 1.4% increase over the last 24 hours. Despite briefly surpassing the $122,000 mark earlier in the week, BTC has mainly remained within a range-bound trading pattern.

ETH continues to outshine BTC in terms of daily gains, with a 5.5% increase and surpassing the $4,700 mark. This level was last observed in 2021, and ETH now stands just 3.8% below its previous all-time high from November 2021. Over the past week, ETH has expanded by 24%, and it has surged by over 55% in the last month.

In a span of two weeks, ETH’s market capitalization has grown from approximately $407 billion to $567 billion, adding $160 billion. This added value exceeds Solana’s entire market capitalization of $107 billion.

In response to this momentum, Standard Chartered, a leading global banking institution, has raised its price target for ETH from $4,000 to $7,500 by the end of 2021 and predicts a target of $25,000 by 2028. Standard Chartered attributes this increase to enhanced industry participation and an uptick in ETH holdings in recent months.

Additionally, BitMine, owned by Tom Lee and the largest publicly traded ETH treasury with over 1.2 million ETH in its possession, plans to raise up to $24.5 billion through stock sales to expand its Ethereum holdings. This move signals a growing interest in ETH as a viable investment asset among larger holders and treasury vehicles following regulatory changes in the U.S. earlier this year.

According to Paul Howard, senior director at Wincent, the recent ETH rally reflects a long-awaited directional shift as institutional investors seek alpha opportunities in the market. Structural changes such as ETH’s transition to a Proof of Stake mechanism, integration with DeFi, and staking rewards are finally showing their value after being overlooked for an extended period. Howard believes an ETH peak near $5,000 this year is a realistic possibility.

Among other major cryptocurrencies, XRP has seen a 1.6% increase, trading at $3.27, while Solana (SOL) has emerged as the top performer among the top-ten assets, with a 10% surge over the past 24 hours, trading just below $200. SOL has gained 19% over the week, with its recent rally likely driven by news of the tokenization of Hong Kong’s CMB International’s HK-Singapore Mutual Recognition Fund on Solana.

Furthermore, Ethereum ETFs have shown remarkable growth, attracting $523.9 million in net inflows yesterday, August 12, following a record $1.02 billion inflow the day before. On the other hand, Bitcoin ETFs had a more modest inflow of $65.9 million on Tuesday. This concentrated buying has led to increased liquidations, with over $560 million in total liquidations in the previous 24 hours, primarily from short positions. Ethereum led in liquidations with over $270 million, followed by Bitcoin with more than $88 million.

This surge in demand is taking place against a backdrop of rising optimism in traditional markets, with U.S. Treasury Secretary Scott Bessent calling for a 50-basis-point Federal Reserve cut in September, hinting at further easing. U.S. equity indexes, including the S&P 500 and Nasdaq, have hit new highs, with yields and the dollar weakening, strengthening the connection between traditional risk assets and recent crypto gains.