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While the overall cryptocurrency market has declined in recent days, Ethereum (ETH) has been a good investment for most of 2021, with its price rising more than five times since the beginning of the year to an all-time high of $4,357 last week, according to CoinGecko results.
This year, ETH has also proved to be a strong investment on the New York Stock Exchange (NYSE); but, to the disappointment of some buyers, this is not the same thing. That ETH, in particular, has little to do with EthereumEthereum or cryptocurrency at all. It’s the ticker for Ethan Allen Interiors, an 89-year-old furniture store in the United States.
Ethan Allen’s stock price is up almost 50% since the start of 2021, now hovering at about $30 a share—a price that the company hasn’t seen since late 2017. While the company recently reported a strong quarter as the economy improves and people get back to work, there is some indication that certain investors are hearing “Buy ETH” and mistakenly buying stock in a furniture retailer rather than cryptocurrency.
“We’ve definitely seen a massive increase on a percentage basis in mistaken activity on the Ethan Allen stream,” Rishi Khanna, CEO of investment social media platform Stocktwits, told The Wall Street Journal. According to the report, Ethan Allen’s stock has seen 56% higher turnover over the last month than its five-year average, which suggests that a lot more people are getting into (and out of) investments.
The twitter, predictably, is having a good time with the mix-up. So far, Ethan Allen’s stock price increase has been somewhat steady over the course of 2021, with no hint of GameStop-style concerted pumping. However, consumer comments such as “In the year 2030, all transactions will be settled digitally with Ethan Allen interiors stock,” indicate that some people see fun in the future mix-ups.
Aside from the latest market slowdown, Ethereum has been on a consistent bull run in recent months, still surging recently when Bitcoin has stalled. Ethereum consistently hit fresh all-time highs in April and early May, and after a 16 percent drop in the last seven days, the price of the second-largest cryptocurrency by market cap is up more than 35 percent in the last 30 days.
Ethereum’s recent rise can be attributed to a variety of causes, including increasing demand for decentralised finance. Crypto collectibles and open finance (DeFi) tokenized as non-fungible tokens (NFTs). Ethereum exchange-traded funds (ETFs) are also gaining popularity, with Canada introducing the first such investment vehicle in April. VanEck also filed with the Securities and Exchange Commission (SEC) in an attempt to be the first to do so in the United States.
Furthermore, Ethereum 2.0 is also in the process of transitioning to a less energy-intensive proof-of-stake platform. Meanwhile, the London hard fork update this summer can boost the network by overhauling its fee structure and can block capacity to help alleviate congestion. In addition, rather than paying transaction costs to miners, the current structure would “burn” them, reducing production and ultimately benefiting the long-term price of ETH.