Ethereum Shoots For The Sky; Dogecoin, Bitcoin Follow Amid A Broader Crypto Rally

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. 

See Also: Scaramucci Still Sees Bitcoin Going To $100,000 By Year-End

“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.

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