Ether, the world's second-largest cryptocurrency, with new highs Tuesday thanks to booming institutional adoption as its larger rival, bitcoin, struggles to pare back massive losses.
- The price of ether has surged 14% over the past 7 days, adding $20 billion to its market value (currently $144 billion) and settling at about $1,200 per token, according to crypto data firm CoinMarketCap.
- Over the past week, the cryptocurrency underpinned by the ethereum blockchain network has surged more than 28% while bitcoin prices–still 10% off their peak after crashing last week–edged up just 5%.
- Ether's surge has been fueled in part by an explosion of decentralized finance (dubbed "DeFi" for short) on the ethereum blockchain, notes MyEtherWallet chief operating officer Brian Norton, pointing to a 20-fold increase in the value of ether tokens used to back such loans.
- "Ethereum has over five times the number of active developers as bitcoin, and is adding developers at a faster clip every day," adds Norton, noting that an increase in developer activity typically spurs demand for the native token.
"Bitcoin is higher today but completely underperforming its rivals–with ether, litecoin and many others are all surging as crypto investors anticipate a consolidation phase for the world's largest cryptocurrency," Oanda Senior Market Analyst Edward Moya said Tuesday, noting that "ballooning defitis" and ongoing inflationary pressures continue to send the broader crypto market higher despite heightened warnings from regulators.
The cryptocurrency market's massive rally has been fueled in large part by inflation concerns and institutional adoption, but the booming rally came to a sudden halt last Sunday. The total market value of cryptocurrencies tumbled from a high of $1.1 trillion to $900 billion in mere hours after a report by the United Kingdom’s Sunday Times shed light on the enforcement measures banks, including HSBC, are taking to bar transfers from cryptocurrency exchanges in the country. The market value of all tokens currently stands at just over $1 trillion.
Powered by Froala Editor