Ether (ETH) hits document excessive as Bitcoin (BTC) rally continues
Ether, the world’s second largest digital currency, hit a record high on Thursday, driven by the ongoing rally in Bitcoin.
The price of ether hit $ 1,918.52 during morning trading in Asia, but has since reduced some gains, according to CoinDesk data. It traded at $ 1,883.58 at 12:14 p.m. Singapore time, up around 8%.
Ether has seen its price jump 160% year-to-date compared to Bitcoin’s 78% increase over the same period.
But it’s the Bitcoin rally, which topped $ 52,000 for the first time on Wednesday, that is also helping to bolster the airwaves.
“The ether slingshot is on the move, and the number 2 coin looks cheap and is set to rise compared to Bitcoin’s $ 52,000 level,” said Jehan Chu, co-founder of cryptocurrency venture capital and trading firm Kenetic Capital, said CNBC.
Ether is the digital coin that powers the Ethereum network. Developers can create apps on the Ethereum network.
In this way, Ethereum works as a kind of decentralized software platform, different from Bitcoin, which is designed only as a currency or store of value. But it is similar to Bitcoin as it is underpinned by what is known as blockchain technology.
While there wasn’t a single factor behind Thursday’s price hike, there were some developments in the background.
Last year an upgrade called Ethereum 2.0 was launched for the network. Proponents argue this should help make Ethereum and coin ether grow bigger. The upgrade is still in progress.
And this month, the futures exchange CME (Chicago Mercantile Exchange) launched Ether Futures, which may give more institutional investors the opportunity to participate in the promotion.
“Despite ongoing complaints about Ethereum’s network fees, it remains the target for all blockchain applications,” Chu said.