Ethereum hits $3.2K, surpassing Bank of America market cap

2024-11-13 08:24:18 Primitive Reading

From cointelegraph by Josh O'Sullivan

Ethereum, the second-largest cryptocurrency by market capitalization, hit $3,200 on Nov. 10 — its highest since August — as Bitcoin surpassed $79,000 following Donald Trump’s victory in the United States presidential election.

According to CoinMarketCap, the market cap of Ether ETH$3,251.82 now stands at around $383 billion, up almost 5% in 24 hours, putting it roughly $40 billion above Bank of America’s market cap.

ETH’s high valuation compared to Bank of America shows a shift in financial market dynamics as blockchain technology adoption and growth begin to exceed traditional finance (TradFi).

The shift signals the rising popularity of decentralized finance (DeFi) and crypto assets as the US Securities and Exchange Commission considers listing the first options tied to spot ETH exchange-traded funds (ETFs).

Chart showing Bank of America’s market capitalization currently sits at $346 billion. Source: CompaniesMarketcap

Related: Vitalik explores potential of ‘info finance’ as ETH tops $3K

ETH gains momentum, turns inflationary again

ETH has witnessed its greatest weekly price action since May as Bitcoin BTC$86,613 price progressively pushes the limits to reach new all-time highs (ATHs).

However, over the last seven days, ETH supply has been quickly increasing, at an inflationary rate of 0.424% a year — previously deflationary in early-to-mid October.

According to Ultrasound.money data, the current yearly ETH burn rate sits at 452,000 ETH, while the issuance rate is more than double that at 957,000 ETH, resulting in an annual supply increase of 0.42%.

Chart depicting the ETH supply turning inflationary over the last seven days. Source: Ultrasound.money

Related: Ethereum enters ‘scarcity mode,’ paving the way for ETH rally to $6K — Analyst

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