Ethereum (CRYPTO: ETH) shot up over 11% on Wednesday night as major coins turned green amid a broad-based rally with the global cryptocurrency market cap rising 5.49% to $2.21 trillion.
What Happened: ETH, the second-largest cryptocurrency by market cap, soared 11.31% at $3,781.76 over 24 hours at press time. For the week, ETH has gained 16.39%.
The cryptocurrency traded 13.41% below its all-time high reached on May 12 when it traded at $4,362.35.
See Also: How To Buy Ethereum (ETH)
Dogecoin (CRYPTO: DOGE) soared 11.80% and traded at $0.31 over 24 hours. Over seven days, the Shiba Inu-themed coin has risen 3.56%.
DOGE gained 5.98% against the apex cryptocurrency Bitcoin (CRYPTO: BTC) and fell 0.71% against ETH over 24 hours.
BTC traded 4.18% higher at $48,774.37 over 24 hours and has fallen 1.04% for the week.
The top gainer over 24 hours on Wednesday was FTX Token (CRYPTO: FTT), which rose 35.11% to $65.08. FTT was up 30.22% over a seven-day period.
The coin of the derivatives trading platform FTX touched an all-time high of $65.97 on Wednesday.
Other notable gainers over 24 hours at press time included Fantom (CRYPTO: FTM), IOTA (CRYPTO: MIOTA), and SushiSwap (CRYPTO: SUSHI).
FTM shot up 21.51% to $0.86, MIOTA rose 16.2% to $1.14 and SUSH was up 13.82% to $13.58 in the period.
Why It Matters: The sky-high interest in non fungible token or NFT scene is giving a boost to Ethereum, as per some analysts.
“The recent spike in NFT (non-fungible token) activity has prompted a rise in transaction volume and active addresses on the Ethereum network, as well as a deflationary supply,” said Alexandra Clark, a trader at GlobalBlock, a United Kingdom-based asset broker, reported CoinDesk.
Clark said that the blockchain activity on Ethereum is “bullish” — adding, “the second leg of the bull run is close.”
Delphi Digital analysts said in a blog post recently that over 130,000 ETH have been burned in less than 30 days since Ethereum ushered in a network upgrade. The analysts described it as an “artificial buyback” for ETH holders.
As per Delphi Digital, Gas or transaction fee on the Ethereum network is spiking, which is a prime cause for ETH burns, which have outpaced analysts’ projections.
“OpenSea, and NFTs in general, are the main culprits for rising gas costs, as evidenced by data from EtherScan,” wrote Delphi Digital.
ETH is breaking out of a short-term and long-term wedge, which indicates it is “entering a solid uptrend,” said the analysts.