Promotions Grayscale Ethereum Trust (OTC: ETHE) took off on Monday. As of 3:00 pm ET, the trust was up 18%. It is easy to explain this oversized step: the popular cryptocurrency Ether is in trust, the tokens inherent in Ethereum (CRYPTO: ETH) blockchain. And the price of ether has skyrocketed over the weekend and continues to rise today.
Each Grayscale Ethereum Trust share is around 1% of the Ether token. Thus, at the time of this writing, the value of the underlying asset per share was around $ 33. This is roughly where the stock is currently trading, which means this move makes sense.
According to CoinDesk, the price of Ether has risen by about 12% in the last 24 hours and by about 350% since the beginning of the year. Explaining this step is not as easy as explaining the step using the Grayscale Ethereum Trust – there are many factors when it comes to cryptocurrencies. Note, however, that Ether is different from the more well-known cryptocurrency. Bitcoin key. Many people refer to Bitcoin as digital gold, claiming to be a store of value. Others use it to buy and sell things. But with Ethereum, developers are using blockchain for things like building apps and writing smart contracts.
Recently, investors have been interested in non-fungible tokens (NFT). At the risk of oversimplifying things, NFTs allow people to own unique digital properties like digital art. And many NFTs are built on the Ethereum blockchain. Hence, with the rise in popularity of NFT (among other things), Ethereum is actually being used more and more. Additionally, Ether tokens are launching the Ethereum blockchain, which means they are in growing demand. This demand drives up the price of Ether along with the Grayscale Ethereum Trust stock.
While it’s tempting to view something like NFT as a quirk, it might be more than that. Please note that large companies are now getting involved in this space. For example, in an interview with CNBC today eBayThe CEO said the company wants to enable NFT on its platform. For another example, even Intercontinental exchangeThe New York Stock Exchange recently joined the NFT party.
While it’s hard to say for sure what will happen in the coming months, I think it’s fair to say that the digital services backed by Ethereum will be in growing demand in the coming years. And the introduction of companies like eBay and the Intercontinental Exchange could help further legitimize this space. If this is true, it is possible that the price of Ether and the Grayscale Ethereum Trust will continue to rise in the long term.
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