The price of Ethereum (ETH) surged by 5% on Tuesday, climbing to $2,680, becoming one of the notable market gainers of the day. This increase was largely fueled by SharpLink Gaming’s announcement regarding a significant purchase of Ethereum as part of its treasury strategy.
Ethereum Price Peaks Amid SharpLink Gaming Announcement
The Ethereum market experienced a notable upswing, with prices rising from below $2,530 earlier in the day to over $2,680—a jump of more than 5%. According to data from CoinMarketCap, daily Ethereum trading volume also saw a significant increase, reaching $23 billion after a remarkable 81% spike.
This price increase coincided with recent insights from Standard Chartered, which suggested that Ethereum could surpass Solana (SOL) by 2025. In contrast, Solana’s price hovered around $177, reflecting a modest 6.8% gain over the past week, while Ethereum noted an 8% increase during the same period. In comparison, Bitcoin’s price remained stable at $110,000.
SharpLink Gaming’s Strategic Acquisition of Ethereum
In a competitive announcement, SharpLink Gaming revealed its plans to acquire $425 million worth of Ethereum as part of its broader financial strategy. The move comes as part of a private investment in public equity (PIPE) funding round, which will see the issuance of approximately 69,100,313 common shares priced at $6.15 each.
The closing date for this substantial fundraise is set for May 29, contingent on standard closing conditions. Joseph Lubin, founder and CEO of ConsenSys and co-founder of Ethereum, expressed enthusiasm for the partnership, stating, “ConsenSys is excited to partner with SharpLink to explore and develop an Ethereum treasury strategy.” The backing for this initiative has seen significant participation from prominent cryptocurrency venture capital firms including Pantera Capital, Electric Capital, and Galaxy Digital, among others.
Rob Phythian, founder and CEO of SharpLink, emphasized the importance of this venture, stating, “This marks a significant milestone in SharpLink’s journey and an expansion beyond our core business.” As of writing, Ethereum was trading at approximately $2,675, still about 45% lower than its all-time high of $4,891 reached in November 2021.
