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On Monday, Bitcoin (BTC/USD) began surging toward its all-time high. Ether (ETH/USD) hit a new record as cryptocurrencies rode a wave of momentum amid inflation concerns and favorable news. The king of cryptocurrencies rose by over 4% to $66,170, approaching its all-time high of $67,016.
Ethereum transaction fees tripled in three months
According to BitInfoCharts data, the transaction fee on Ethereum was $41.5 on average this weekend, almost three times what it was three months ago. Ether peaked at $4,768, bringing its gains to almost 60% since the start of October.
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In comparison, Bitcoin has gained about 51% in the same period, propelled by last month’s launch of a US futures-based Bitcoin ETF. Investors are seeking exposure to digital assets, which are increasingly serving to protect against inflation.
Winners and losers
Some of the biggest winners outside Bitcoin in the past 24 hours were Cosmos (ATOM/USD), Ripple (XRP/USD), and Internet Computer (ICP/USD). Shiba Inu (SHIB/USD) and Solana (SOL/USD) were on the losing side.
Main market narrative shifts to altcoins
The market’s main narrative has moved to altcoins against the backdrop of Bitcoin’s receding market dominance. On Monday Solana, Avalanche (AVAX/USD), and other tokens associated with layer 1 blockchains kept grabbing the market’s attention as ether’s transaction fees rose.
Kyle Rodda, analyst at broker IG Markets, told Reuters real yields were declining as traders prepared for inflation, adding to the attractiveness of crypto, gold, and other such assets. He added:
Financial institutions want to be a part of it, regulators don’t want to clamp down on it too much. We’re almost past the inflection point, where it’s part of the system and its going to be very, very hard to extricate it.
Australia and Singapore embrace crypto
Australia’s biggest bank has announced plans to launch crypto trading for retail customers. Singapore has also expressed positivity on the asset class.
Crypto in US politics
Eric Adams, New York Mayor-elect, shared he would take his first three paychecks in Bitcoin last week. He announced intentions to make NYC a cryptocurrency industry hub, following a statement by Miami’s mayor in the same vein.