The Ethereum cryptocurrency surpassed $ 3,000 to set a new record in dazzling growth that overshadowed larger bitcoin as investors assume ether will be increasingly useful in a decentralized future financial system.
Ethereum, the token traded on the Ethereum blockchain, rose 3% on the Bitstamp exchange to 3051.99 $ at lunchtime in Asia. To date, it has grown by over 300% over the year, easily surpassing the 95% growth of the more popular bitcoin.
In part, the big rally is catching up with bitcoin gains in late 2020, said James Quinn, managing director of Q9 Capital, a Hong Kong private cryptocurrency manager.
This also reflects the improvements to the ethereum blockchain, he said, and the growing shift towards 'DeFi', or decentralized financing, that pertains to transactions outside of traditional banking for which the ethereum blockchain is a key platform.
"Initially, the growth was really driven by bitcoin, as many institutional investors took off into space, that would be their natural first destination," said Quinn.
The launch of funds on the Ethernet exchange in Canada and the growing demand for Ethernet wallets to transact on non-exchangeable tokens such as digital art also raised the price.
The ether / bitcoin cross rate increased by more than 100% this year and hit a 2.5-year high on Sunday, indicating a rotation to the second-largest cryptocurrency as traders diversify their exposure.
“The DeFi volume increase continues to drive up ethereum prices as investors gain confidence in crypto and see ethereum as a safe second. place of assets, ”said Jehan Chu, managing partner at Kenetic Capital, a blockchain technology company in Hong Kong.
Illustrating the dynamics of such new transactions, Bloomberg said last week it plans to issue a digital bond on the Ethereum blockchain while JP Morgan plans a managed bitcoin fund.
Bitcoin, the world's largest crypto asset with a market cap of more than $ 1 trillion, recovered $ 50,000 last week and fluctuated around $ 58,000 on Monday, an increase of around 3% but well below the record high of 64,895.22 $ .
Worth a look at course Ethereum. The graph is almost vertical. The price is rising astronomically.