Three Reasons Why Ethereum Surged to $3,800 Earlier Today

Statistics shared by an insider Colin Wu and blockchain data agency Santiment, shows, which brought Ethereum to the mark of $3,800 and what is still keeping him in the neighborhood $3,750.

Impact of NFT and ETH commissions

Chinese blockchain journalist Colin Wu tweeted, that the recent jump in the price of the second-largest cryptocurrency, Ethereum, is largely due to the growing popularity of non-exchangeable tokens (NFT), which are based on the ETH blockchain.

This year, several expensive works of art were sold as NFTs, and Tron CEO Justin Sun boasted about buying some of them. He boasted that he bought works by Picasso and Warhol - "Femme nue couchée au collier" and "Three Self-Portraits" - at a price of $20 million and $2 million respectively.

He also purchased EtherRock 87 NFT for $611,000. Another example of a popular NFT sale is Fortune's NFT collection. The famous magazine put its NFT collection, including a recent magazine cover, up for sale and sold it for $1.3 million via Ethereum.

The second reason mentioned by Colin Wu is that 164,000 ETH has been burned as of September 2. The introduction of Ethereum's EIP-1559 update on August 5 now allows some ETH fees to be burned.

Investor focus has shifted from SOL to ETH

Crowd sentiment is now shifting away from Solana (SOL) toward Ethereum, according to data provided by analyst firm Santiment. This is one of the reasons why ETH first exceeded the $3,500 mark on Monday, and reached the $3,800 level today. SOL hit an all-time high of $130 on August 31, and hit $100 the day before.

In addition, according to analyst firm CryptoQuant, Ethereum's supply on centralized crypto exchanges has declined significantly in the past week.