Analysts expect Ethereum cost rally to new ATH since the Berlin upgrade resulted in a drop in gas fees and a surge in DeFi activity.
Mainstream acceptance of cryptocurrency continues to pick new highs in 2021 thanks to the growth of popular sectors like decentralized finance (DeFi) and non fungible tokens (NFTs).
The explosive growth seen over the past year wouldn't have been possible without the Ethereum network, which indicated the price of Ether (ETH) broke out to a new all-time high on 27 April following the successful launch of the "Berlin" upgrade on 15 April.
The price shakeout on 24 April, when Bitcoin (BTC) dropped to $46,000 before springing back above $54 K, Ether gained ground on the highest cryptocurrency.
Struggles with high transaction costs and slower confirmation times have weighed heavily on Ether's value over the last couple of months as the excitement around DeFi and NFTs has led to skyrocketing activity on the network.
After the Berlin integrated was successfully implemented on 15 April, the normal gas fee began to decline to more manageable levels, resulting in an increase in trading volume on the top decentralized exchanges like Uniswap and SushiSwap.
Most of the highest DeFi and NFT protocols recently operating on ETH, the uptick in activity has resulted in the price of Ether appreciating faster than BTC in the short term, as guessed by several analysts.
With DeFi-related activity again on the uptrend and excitement building for ETH 2.0 and the full migration to proof-of-stake, Ether price looks well-positioned for further upside.