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.
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.
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.
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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