Ethereum’s market capitalization has surged to $565.2 billion, making it the 22nd largest asset in the world, according to data from CompaniesMarketCap.
The second-largest cryptocurrency has recently leapfrogged Mastercard and Netflix in global rankings, narrowing the gap to its all-time high from November 2021. ETH is now only about 3.7% below its record peak of $4,878.
This impressive climb comes as the broader crypto market regains strength, with Ethereum positioned at the forefront of the rebound.
Key Drivers Behind Ethereum’s Surge
A major catalyst for the latest rally has been softer-than-expected U.S. Consumer Price Index (CPI) data for July. The lower inflation reading has boosted investor confidence that the Federal Reserve could cut interest rates as soon as September, potentially by 25 basis points.
A rate cut would reduce borrowing costs, often encouraging a shift toward riskier assets such as cryptocurrencies.
Another significant factor has been the steady stream of institutional capital flowing into Ethereum exchange-traded funds. ETF inflows for ETH have repeatedly broken records in recent months, including a single-day intake of over $1 billion. This institutional interest has played a central role in Ethereum’s sustained upward momentum.
Can Ethereum Break Its Record?
With Standard Chartered recently raising its year-end target for ETH to $7,500, the path to a new all-time high appears within reach. Such a move from current levels would represent a jump of nearly 60%, potentially fueled by continued ETF inflows and favorable macroeconomic conditions.
However, analysts caution that the global economic outlook remains uncertain. As ETH edges closer to uncharted territory, some traders may lock in profits, which could trigger short-term pullbacks before the next major leg upward.
Source: https://coindoo.com/ethereum-overtakes-netflix-in-market-cap-closing-in-on-2021-peak/