Ether, the world’s second-largest cryptocurrency, reached new highs the following week, absorbing a larger percentage of the market and recording the largest price gain among cryptocurrencies this week, as investors avoid bitcoin, which still suffers its sudden decline. losses.
With an increase of approximately 15% over the following week, the value of the ether peaked at approximately $2735 in a time after 2pm ET on Tuesday, catapulting the token market capitalization to approximately $315 billion, more than $50 billion more than its $261 billion cost. just a week ago.
Meanwhile, the value of bitcoin has fallen by 2% over the following week, resulting in a market cost of about $1 trillion, 3 times higher than ether, but nearly 20% below the record point at the beginning of the month.
By starting the increase in ether prices, investors have been increasingly optimistic, making an investment of around $34 million in ether’s budget last week, while bitcoin’s budget decreased by about $21 million. dollars, according to a report published Monday through cryptocurrency investment firm CoinShares.
“Demand is changing,” Meltem Demirors, CoinShares’ chief strategy officer, told CNBC on Monday, noting that cryptocurrencies “change from one asset to another” as they move their holdings to higher-yield tokens like ether.
This year alone, the ether rose to 273%, surpassing Bitcoin’s 87% gain over the same period.
Cryptocurrencies soared before coinbase’s public market soared before this month, however, volatility problems have led to greater divergence between the world’s two largest cryptocurrencies, that is, after Bitcoin mining considerations triggered a sudden drop of $300 billion last week. Built on the Ethereum blockchain, which claims to be a decentralized network in which other programs can be created, Ethereum is the chain of selection blocks for many products and facilities that have recently gained popularity, adding decentralized financing products that have quadrupled in volume this year (for about $65 billion) and the now bubbling frenzy around non-expendable tokens , all of which are basically built on Ethereum.
“Ethereum identifies as the preferred means of negotiating bitcoin price reserve,” said Julian Emanuel, a leading stratatega in equity and derivatives of the money market company BTIG, echoing comments from others on the developing use of ether. Earlier this month, billionaire investor Mark Cuban said. the price of applications that take credit for Ethereum would eventually eclipse Bitcoin, which he criticized as “very difficult to use”.
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I’m a journalist at Forbes and I specialize in markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I did a double degree in business journalism.
I’m a journalist at Forbes and I specialize in markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I majored in business journalism and economics while applying for UNC Kenan-Flagler Business School as a marketing and communications assistant. Forbes, I spent a summer reporting on los Angeles’ personal sector for the Los Angeles Business Journal and writing about North Carolina’s publicly traded corporations for NC Business News Wire.