Ethereum (ETH-USD) led gains in the cryptocurrency market on Thursday, surging over 6%, while bitcoin (BTC-USD) saw a modest increase of 1.5%. The global cryptocurrency market capitalisation rose by 2%, reaching $1.34tn (£1.06tn), according to CoinGecko data.
Ethereum also outperformed bitcoin over the past week, climbing 15% compared with bitcoin’s 1.7% decline during the same period.
Bitcoin enjoyed a record-setting rally following the US election, driven by market optimism over president-elect Donald Trump’s anticipated pro-crypto policies, although it lost steam in subsequent weeks.
The ETH/BTC trading pair demonstrated strong momentum, rising from 0.035 to 0.038 on Thursday, according to TradingView data. This marks a recovery from its post-election low, reflecting heightened investor interest in ethereum.
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Total value locked (TVL) in ethereum-based decentralised finance (DeFi) projects grew by 7% in the past week, reaching $69.3bn, according to DefiLlama. The surge suggests rising confidence in ethereum as a platform for financial innovation.
Altcoins such as Cardano (ADA-USD) and Solana (SOL-USD) have also posted gains, up 1% and 1.5%, respectively.
Cardano has increased in value by 26% in the past week, according to CoinGecko data. Market analysts attribute this optimism to a combination of improving investor sentiment and growing use cases in DeFi.
Total stablecoin supply has exceeded the previous all-time high of $188bn, with stablecoins such as USDT (USDT-USD) and USDC (USDC-USD), primarily operating on the ethereum blockchain, driving growth, according to a recent report by Presto Research.
“Stablecoin metrics show ethereum remains a platform of choice for builders exploring real-world applications, despite skepticism from some market participants,” Presto Research analysts noted.
Ethereum, the second-largest cryptocurrency by market cap, has also enjoyed robust growth, bolstered by its role in DeFi and non-fungible tokens (NFTs).
With a market cap of over $434bn, ether’s price has risen to around the $3,600 mark, representing a 79% increase over the past year, according to Coingecko data.
Read more: 10 crypto tokens that are rising alongside bitcoin
Developers remain drawn to its smart contract capabilities, while its upgrades, including the transition to proof-of-stake, have enhanced scalability and energy efficiency.
The cryptocurrency market’s performance has also been influenced by developments in traditional finance. US equity markets rallied earlier this week after president-elect Trump nominated Scott Bessent as Treasury secretary. Investors responded positively to Bessent’s proposed “3 Arrows” strategy, which targets 3% GDP growth, a 3% budget deficit by 2028, and a daily oil production increase of 3 million barrels.
