Ether leaps in step with Bitcoin’s recent rally to an all-time high above $ 2,000 Financial and business news
The cryptocurrency ether runs on the Ethereum network.
Given Ruvic / Reuters
- The price of ether rose in lockstep with the Bitcoin rally to an all-time high on Friday to just under $ 60,000.
- “The most important takeaway for me is that the increased flow of capital into crypto is now more than just entering [bitcoin]”Amber Group’s Jeffrey Wang told Insider.
- Chainlink co-founder Sergey Nazarov also attributed the rise of the ether to the rise of decentralized finance (DeFi).
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The price of ether, the world’s second largest cryptocurrency by market capitalization, rose in lockstep with the Bitcoin price increase to an all-time high on Friday.
Ether climbed to a high of $ 2,077 around 11 a.m. ET. The USD 2,000 threshold was exceeded for the first time on Friday at 9:50 a.m.CET. The digital asset for the Ethereum network grew by 177% in 2021 alone and by 1,370% in the last 12 months.
“It’s very positive to see [ether] Rally together with [bitcoin] Jeffrey Wang, head of the American division at Amber Group, told Insider, “The most important aspect for me is that the increased flow of capital into crypto is now more than just entering.” [bitcoin]. “
Wang also said investor diversification bodes well for the entire cryptocurrency space, which has seen a broader rally in recent weeks, fueled by the economic recovery from the pandemic-triggered recession and the third round of economic tests under the Biden -Government has been boosted.
Bitcoin flirted at the $ 60,000 level this week as PayPal, Visa, and CME Group again provided institutional support.
“”[Bitcoin] is a measure of investor confidence in the store of value while interest in assets like [ether] This focus on the programmable, smart contract side of the ecosystem shows investors optimism about the benefits and potential of decentralized funding, “John Wu, president of Ava Labs, the team behind Avalanche, told Insider.” Crossing this threshold by Ethereum can lead to a paradigm shift that will benefit the two to three smart contract networks that really gain a foothold with decentralized funding. “
Sergey Nazarov, co-founder of Chainlink Lab, a blockchain company, also attributed the rally of Ether to the rise of decentralized finance, or DeFi, an umbrella term for various applications that use public blockchains and crypto-assets to feed the traditional financial sector to disturb.
“Ethereum users now rely on DeFi applications to borrow, borrow, generate returns, create derivatives, create options and even trade without relying on a central third party like a bank or a fintech like Robinhood must, “Nazarov told Insider. This new sector, valued at over $ 45 billion, is the fastest growing in the cryptocurrency industry.
“I would expect more users to use DeFi on Ethereum if they are looking for double-digit returns,” Nazarov said. “I wouldn’t be surprised if the total value stored in DeFi apps on Ethereum tops hundreds of billions of dollars.”