Ethereum (ETH) Price Surges $2700 After European Investment Bank Issues “Digital Bond” On Ethereum Network
The world’s second-largest cryptocurrency Ethereum (ETH) is making big moves surging to its new all-time high above $2700. At press time, ETH is trading at a price of $2716 with a market cap of $312 billion.
The recent Ethereum price rally comes as ETH gains more than 20% in the last three days. After slipping under $2200 levels earlier this week, ETH has bounced back very much strongly adding $500 and more just in a matter of three days.
The recent price rally in ETH comes on the backdrop of the positive news coming from the European Investment Bank (EIB). As per the Reuters report, EIB is launching a “digital bond” sale using the Ethereum blockchain network.
The European Investment Bank plans to issue a two-year 100-million-euro ($120.8 million) digital bond in a sale that is led by giants like Banco Santander, Goldman Sachs, and Societe Generale,
Last Friday, Societe Generale announced its new subsidiary wing Societe Generale SFH for issuing a 100-million euro bond as a security token on the public Ethereum blockchain network.
Speaking to Reuters, Danny Kim, head of revenue at crypto broker SFOX, said that EIB issuing an Ethereum-based digital bond has triggered a bullish use-case for ETH. He further added that the ETH balances on the exchanges have also been reducing and this drop in supply has fuelled further rally in ETH.
“The amount of Ethereum sitting on exchanges continues to drop lower and has been the lowest in the past year. With less supply on exchange available, there’s less likely a chance of a major sell-off,” he added.
The demand for Ethereum has also spiked in recent times with massive surge in DeFi and NFT activity. The use of ETH in NFT platforms like SuperRare and Decentraland has surged significantly.
On the other hand, the amount of ETH deposits in Ethereum 2.0 Deposit contracts has also surged significantly. The total number of ETH tokens staked with Ethereum 2.0 has now crossed above $10 billion.