The recent rally in the prices of cryptocurrency is not only limited to Bitcoin. In the past week, we have witnessed a considerable rise in the fortunes of Ethereum and Dogecoin as well. According to the latest reports, the value of Ethereum was around $2380, i.e., a healthy increase of 10% on the day. Reports suggest that this growth is the highest single-day hike that the second-largest cryptocurrency by market capitalization has registered since March this year. This spike in the value has put Ethereum’s market capitalization to around $274 billion, making for 12.2% of all cryptocurrencies’ total market cap. In comparison, Dogecoin has posted even more impressive growth numbers with over 76% rise in its valuation over the week. Latest, it was trading at $0.129272 with a worth more than $14 billion in terms of its total market capitalization.
There are many reasons behind the rally in the prices of Ethereum. Among others, one of the most significant causes pushing the valuation is the investment that the startup Studio of Ethereum, ConsenSys, is getting from industry bigwigs. Focused on building cryptocurrency infrastructure, ConsenSys recently announced that it acquired funding from JPMorgan Chase and UBS banks. The total money raised by the studio is pegged at $65 million, and this is the very first time it has raised the money through the external funding mechanism.
In addition to these big names, MasterCard also joined the funders, and the prominence of the development lies in the fact that MasterCard has inked a strategic partnership with the ConsenSys for the development of Enterprise Blockchain Application solutions. This directly means that the future scope of the partnership between ConsenSys and MasterCard will be wider, especially in the context of supporting the projects of Central Bank Digital Currencies (CBDCs). MasterCard is associated with several central banks on their plans to roll out CBDCs, and this association with ConsenSys is done specifically, keeping in mind these CBDCs project.
As a parent organization, Ethereum will benefit from this association. Not only will it gain wider exposure in the Enterprise Blockchain Application but also get to work more closely with the central banks. This could help the organization to make its entry to more governments and regulated projects. It’s a big opportunity for Ethereum, and according to cryptocurrency experts, this collaboration has the potential to become a game-changer for its valuation in the long run.
It is very likely that in the current atmosphere, which is full of promise for the cryptocurrency world, both Ethereum and Dogecoin will continue their winning streaks – at least for the short run. The Coinbase listing on Nasdaq will also provide further momentum to the prices and valuation of cryptocurrencies, including these two digital coins. However, the long-term valuation of cryptocurrencies, including Ethereum and Dogecoin, will ultimately depend upon their projects and the utility they bring to the table for users and investors. For now, both digital coins are well-poised to keep soaring while adding more to their valuation and market capitalization.