The European Investment Bank (EIB) announced a plan to sell a “two-year digital bond” on the Ethereum blockchain network with a total value of up to 100 million euros.
An analyst tweeted that the issuance of digital bonds will be led by Goldman Sachs, Santander, and Société Générale.
Based on a Reuters report, SFOX cryptocurrency broker Danny Kim believes that the issuance of EIB digital bonds will trigger a bullish trend as Ethereum’s supply decreases. He said:
“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.”
Ether has continued to rise for three consecutive days. Stimulated by this news, the cryptocurrency hit a record high of $2,718. At the time of writing, the price of ETH has retraced and is trading at $2,617.
According to Coinmarketcap, in terms of market capitalization, Ethereum, the world’s second-largest digital asset of $301,838,265,041, has increased by 13.04% in the past 7 days.
Currently, the average transaction or gas fees for the Ethereum network have hit a 3-month low, below $10. The decline in gas fees and the revival of the Decentralized Finance (DeFi) market have also contributed to the surge in price.
Source: DeBank
The popularity of DeFi protocols built on the Ethereum blockchain made the gross value locked and net value locked of Ethereum smart contracts reach a record high of $73.19 billion and $55.12 billion respectively.
Source:Bybt
Based on the Bybt data, most sell options are concentrated at around $2,400 strike prices. The call options are valued at around $2,560.
At the same time, the call/put ratio is 1.36, which indicates that there are more investors who are enthusiastic about Ether’s market outlook, making Ethereum more bullish than bearish.
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