Ethereum hits $3.2K and surpasses Bank of America’s market cap

Ethereum, the second-largest cryptocurrency by market capitalization, hit $3,200 on November 10 – the highest since August – as Bitcoin surpassed $79,000 following Donald Trump’s victory in the US presidential election.

According to CoinMarketCap, the market cap of Ether (ETH) is now around $383 billion, up nearly 5% in 24 hours, putting it around $40 billion above Bank of America’s market cap.

ETH’s high valuation compared to Bank of America shows a shift in the dynamics of financial markets as blockchain technology adoption and growth begins to outpace traditional finance (TradFi).

The move signals the growing popularity of decentralized finance (DeFi) and crypto-assets as the US Securities and Exchange Commission considers listing the first opportunities linked to spotting ETH exchange-traded funds (ETFs).

Related: Vitalik explores ‘information finance’ potential as ETH tops $3K

ETH takes off, becomes inflationary again

ETH has witnessed its biggest weekly price action since May as the Bitcoin (BTC) price gradually pushes the limits to reach new all-time highs (ATHs).

Over the past seven days, however, the ETH supply has risen rapidly at an inflation rate of 0.424% per year – previously deflationary in early to mid-October.

According to Ultrasound.money datais the current annual ETH burn rate of 452,000 ETH, while the issuance rate is more than double that of 957,000 ETH, resulting in an annual supply increase of 0.42%.

Related: Ethereum Enters ‘Scarcity Mode’, Paving Way for ETH Rally to $6K — Analyst

Community analysis

Sentiment among cryptoanalysts on X indicates mixed views, but shared expectation of further price action on the upside, with predictions of a new ATH soon.

An X user submitted their expectation that ETH is set to break the $4,000 barrier, saying that ETH “will most likely win through $4k.”

Cryptanalyst Poseidon submitted a similar trajectory on X, but expected an initial “pullback before the new ATH”, with the ETH price above the $4,300 price mark.

Related: SEC Considers Approving Ethereum ETF Options

Vitalik introduces “info finance”

Meanwhile, Vitalik Buterin, co-founder of Ethereum, introduced the concept of “info finance” on November 9.

Buterin explained that infofinance is “a discipline” that begins with “a fact that you want to know” and ends with a market that “optimally” elicits this information from market participants.

The ETH co-founder advocated for prediction markets to gather community insights about future events in a way that informs public expectations without media sensationalism or influence.

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