The cryptocurrency market witnessed a historic day on May 4, 2021, as Ethereum shattered records and Dogecoin captured mainstream attention, while Wall Street formally embraced digital assets with the launch of S\&P Dow Jones Indices’ new cryptocurrency benchmark series.
TL;DR
- Ethereum broke above $3,300, reaching a new all-time high of $3,430
- S\&P Dow Jones Indices launched its first cryptocurrency index series covering Bitcoin and Ethereum
- Dogecoin surged past $0.50 for the first time, driven by celebrity endorsements and retail speculation
- Ethereum mining revenue hit a record $1.59 billion in April according to Coin Metrics
- Total DeFi value locked surpassed $75 billion as the ecosystem continued rapid expansion
Ethereum’s Record-Breaking Rally
Ethereum’s remarkable ascent showed no signs of slowing as the second-largest cryptocurrency by market capitalization surged to a new all-time high above $3,430 on May 4. The price action represented a staggering 16% gain on the day and extended ETH’s seven-day rally to over 22%, bringing its total market capitalization to approximately $376 billion according to CoinMarketCap data.
The speed of Ethereum’s climb caught even seasoned analysts off guard. Katie Stockton of Fairlead Strategies noted that the $3,000 price target was reached sooner than their models had predicted. Her advice to market participants was straightforward: follow the trend. The momentum was simply too powerful to ignore.
What made this rally particularly significant was its fundamental underpinning. Elie Le Rest of ExoAlpha pointed to DeFi growth and the upcoming ETH 2.0 upgrade as the twin engines powering Ethereum’s ascent. Despite persistently high gas fees on the network, market participants were clearly pricing in the anticipated improvements from Ethereum’s transition to proof-of-stake.
DeFi and Mining Revenue Hit New Heights
The Ethereum ecosystem’s growth extended well beyond price action. According to DeFi Pulse, the total value locked in decentralized finance protocols \— the vast majority built on Ethereum \— reached $75 billion. This figure represented a quantum leap from where DeFi stood just months earlier and underscored the explosive demand for decentralized lending, trading, and yield farming.
Ethereum miners also enjoyed unprecedented prosperity. Data from Coin Metrics revealed that Ethereum miners earned $1.59 billion in April 2021, a new all-time high that surpassed the previous month’s record of $1.38 billion. Of that total, $702 million came from transaction fees alone \— a testament to the network’s heavy usage and the competitive environment for block space.
Vitalik Buterin Joins the Billionaire Club
The rally also minted a new cryptocurrency billionaire. Ethereum co-founder Vitalik Buterin’s personal ETH holdings crossed the $1 billion mark, making the 27-year-old the youngest crypto billionaire in history. Buterin’s journey from launching Bitcoin Magazine as a teenager to creating the world’s most widely used smart contract platform had reached a remarkable milestone.
Dogecoin’s Meteoric Rise Captures Global Attention
While Ethereum’s fundamentals-driven rally commanded respect from institutional analysts, Dogecoin’s surge to above $0.50 was a different phenomenon entirely. The meme-inspired cryptocurrency, originally created as a joke in 2013, saw its market capitalization swell to approximately $70 billion \— making it the fourth-largest cryptocurrency by market cap on CoinMarketCap.
Dogecoin’s 24-hour gain of over 22% and its staggering 98% seven-day surge were driven largely by continued mentions from high-profile figures, including Elon Musk and Mark Cuban. The speculative frenzy was so intense that trading platform Robinhood experienced disruptions due to overwhelming demand for crypto trading. Dogecoin’s rise from roughly $0.002 just one year earlier represented one of the most dramatic price appreciations in crypto history.
Bitcoin Holds Steady Amid Altseason
Bitcoin traded at approximately $53,333 on May 4 according to CoinMarketCap, down roughly 6.7% on the day but remaining the dominant force in the market with a capitalization near $1 trillion. The flagship cryptocurrency was trading about 18% below its all-time high of $64,804, reached on April 14, 2021. Despite the short-term pullback, Bitcoin’s year-to-date gains remained above 90%.
The broader crypto market capitalization stood at approximately $2.33 trillion, with Bitcoin dominance hovering around 44%. The market’s overall structure suggested a classic ltseason\ dynamic, where capital was rotating from Bitcoin into alternative cryptocurrencies, particularly Ethereum and meme coins.
Why This Matters
May 4, 2021 represented a watershed moment for the cryptocurrency industry on multiple fronts. Ethereum’s break above $3,300 validated the thesis that the smart contract platform’s value proposition extended far beyond speculation, driven by genuine DeFi adoption and anticipation of network upgrades. The S\&P Dow Jones Indices launch of cryptocurrency benchmarks signaled that traditional finance was no longer content to watch from the sidelines \— Wall Street was building infrastructure to serve the growing demand for crypto exposure.
The day also highlighted the dual nature of the crypto market: institutional-grade products and billions in DeFi value alongside retail-driven meme coin mania. This juxtaposition of serious infrastructure development and speculative frenzy would come to define much of the 2021 bull market narrative.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
1.59B in ETH mining revenue for April 2021 alone. no wonder GPU prices were absolutely insane. miners were buying every RTX 3080 they could find and retailers still had empty shelves months later
S&P Dow Jones launching crypto indices and Doge hitting 50 cents on the same day. traditional finance legitimizing BTC while retail was buying a meme coin. peak 2021 energy
1.59B mining revenue in one month. POW was printing money for miners right before the crash. wonder how many held vs sold
ath_hunter_ miners were definitely selling. difficulty bomb hadnt kicked in yet so margins were 80%+ for anyone with cheap power
DOGE at 50 cents while ETH hit 3430. the market was completely unhinged. everyone was a genius until they werent
ETH mining revenue hitting $1.59 billion in April 2021 was insane. no wonder everyone was buying GPUs
Maya R. $1.59B in mining revenue for one month. GPU prices were so insane you literally couldnt buy a 3080 for retail. wild times
75B TVL sounds great until you realize half of it was mercenary LPs farming governance tokens. the impermanent loss when ETH crashed from 3430 to 1900 wiped out an entire generation of LPs
dogecoin past $0.50 and ETH at ATH in the same week. may 2021 was peak crypto mania, nothing since has come close
DOGE at $0.50 with a market cap bigger than actual companies. that week was when you knew the cycle was peaking
cycle_top_ DOGE market cap bigger than real companies at $0.50 was the ultimate peak signal. everyone knew it but nobody wanted to call it
DOGE had a market cap bigger than ford motor company at one point that week. a meme coin valued higher than century old manufacturers. peak 2021 energy
S&P Dow Jones launching a crypto index at the exact top of the cycle is the most institutional thing possible. they always arrive last
index_skeptic_42 S&P launching a crypto index at 3430 ETH is textbook. traditional finance always shows up after the party. same thing happened with the CME futures launch in 2017 at peak BTC
index_skeptic_42 S&P launching a crypto index at 3430 ETH was textbook top signal. traditional finance always arrives after the party started
DeFi TVL at $75 billion back then. after the crash it dropped to like $50 billion and took over a year to recover. those were rough months for LPs
tvl went from $75B to $50B then slowly clawed back. the real damage was LPs who got impermanent loss on top of the token drawdown. double rekt
dust_settles IL on top of token drawdown was the real killer. LPs got hit twice and most didnt understand the math until their position was down 60%
S&P Dow Jones launching a crypto index at the same time ETH hit $3,430. institutional arrival and retail mania colliding in the same week
1.59 billion in ETH mining revenue for one month while GPUs were sold out everywhere. that was the peak of proof of work profitability. never coming back
ETH mining revenue at 1.59B in April 2021 and people wonder why GPU prices were insane. 3080s were going for 2x MSRP because of this exact month
DeFi TVL at 75B when ETH was 3400. fast forward to 2026 and TVL is lower while ETH is 3x the price. TVL as a metric died somewhere in 2022
75B TVL number was massively inflated by mercenary capital farming governance tokens. remove the incentive farms and real TVL was maybe 30B. the crash exposed how much was fake
tvl_collapse_witness the IL on top of token drawdown was the real killer. LPs got hit twice and most couldnt even calculate their actual losses until months later
S&P launching a crypto index at the exact ATH week is the most reliable top signal in finance. they did the same with CME futures in december 2017