Ethereum is moving to historically high levels, limiting the dominance of Bitcoin. More specifically, the cryptocurrency is now moving around 3.456,57 dollars, with the profits for its holders exceeding 360% only in 2021.
Interest in cryptocurrencies has grown in recent years, with Bitcoin constantly reaching new heights.
Bitcoin, which has been described as “digital gold“, is characterised by high volatility. It is now around the $56.000 territory, having exceeded $60.000 as it was thought it could act as a hedge against inflation.
However, Ethereum, the other big cryptocurrency, works completely differently. It is a public open source blockchain platform based on distributed computing and operating system with smart contract functionality. It supports a modified version of the Nakamoto Consensus through a transfer transaction.
The Ethereum rally began when the European Investment Bank announced the issuance of $121 million bonds and their sale to the Ethereum blockchain network.
The Ethereum price spike reflects both the improvement of the platform and an increasing shift towards a decentralisation of the financial sector and in particular transactions outside the traditional banking sector, for which Ethereum blockchain technology is very important.
“The rise in decentralised financial transactions continues to push the price of Ethereum higher as investors gain more confidence in cryptocurrencies and see “Ether” as a safe haven of second choice,” said a Hong Kong executive at Kenetic Capital.