Why Etherium is growing

Bakkt CEO Gavin Michael commented on the announcement. Here’s his rejoinder, in which the entrepreneur shares his take on what’s happening.

The top priority at Bakkt is to provide flexible options for customers to use their digital assets. The addition of Etherium to our list of assets gives traders a new perspective.

Bakkt CEO Gavin Michael


Which means the platform's representatives are making a big bet on popularising this asset among Bakkt users. And it makes a lot of sense: after all, Etherium is still the main home for the decentralised finance industry, unique NFT tokens, as well as other popular blockchain-based projects.

That said, the popularity of the Eth network is also hurting it, as the blockchain's inability to handle a large number of transactions has significantly increased the cost of making transfers and other interactions with the blockchain. Specifically, a quick ETH transfer today costs $10, while sending ERC20 tokens like USDT costs $32 at all.


Commissions on the Etherium network

Because of this, many projects are moving to blockchains with low commissions. The most popular recent examples are Solana and Avalanche. Transactions on these networks go through in seconds and cost cents or even fractions of it.

According to Decrypt, Bakkt customers will soon be able to buy and sell ETH, send coins via the company’s mobile app, and spend on goods and services at merchants. Institutional level customers will be able to use Bakkt’s custodial service.

Recall that custodial is a service that holds someone's assets. In the case of blockchain, we are talking about coins like bitcoins and ethers. That way, big investors can stop worrying about the safety of crypto, which is still under the radar of hackers, and shift the responsibility for storing it to another company for a fee.

Etherium has already responded to the news with the cryptocurrency rising to a record $4,764 so far today. At the same time, when the markets collapsed in March 2020, the value of ETH also plunged to $110.

A daily chart of the Etherium exchange rate

However, such percentages are nothing compared to the returns that the Shiba Inu (SHIB) coin has seen so far this year. It should be reminded that the incredible growth of SHIB was largely due to the theme of the project: it is very similar to Dogecoin, which is an altcoin actively promoted by billionaire Ilon Musk.

An investment in SHIB has helped 35-year-old American Rob [he would not reveal his last name – editor’s note] become a millionaire in just a few months. He invested $8,000 in the coin in February, when it was still worth $0.0000001. By autumn, the 800 billion SHIB in his wallet had grown in value to a few million dollars.

SHIB’s growth in the last 90 days

Rob quit his job, withdrew $500,000 into a bank account and still holds about a million in tokens. Moreover, he is confident that the altcoin’s growth will continue, making him willing to invest in it for the long term, reports Cointelegraph.


We believe that news like this has enough potential to attract new investors to the cryptocurrency space. Still, the novelty of Bakkt will allow large-cap holders to connect with ETH, while growth stories like SHIB are sure to appeal to fans of other investing niches and assets. Which means in this case, the world of digital assets is only going to benefit.