On Monday, the cryptocurrency ether reached $3,000 for the first time, setting a new milestone in a spectacular surge that has outperformed the leading cryptocurrency bitcoin.
“It also illustrates ethereum blockchain improvements.”
By lunchtime in Asia, Ether, the second-largest cryptocurrency, had risen 3% to $3,051.99 on the Bitstamp market. This year, it has increased more than 300 percent this year, comfortably outpacing the more successful bitcoin, which has risen 95 percent. According to James Quinn, managing director of Q9 Capital, a Hong Kong cryptocurrency private wealth fund, the vast winning surge is partly a catch-up to late 2020 gains in bitcoin.
According to Reuters, James Quinn believes the winning rally is due to enhancements to the Etherum blockchain. He also mentioned an increasing trend toward “DeFi,” or decentralized finance, which relates to non-traditional financial transactions for which the Ethereum blockchain serves as a critical forum. “At first, the rally was led by bitcoin because it would be their normal first port of call when many institutional investors come into space,” he added. Quinn said, “But as the rally has matured over the last six months, you have DeFi, and a lot of DeFi is based on ethereum.“
The news that the European Investment Bank wants to sell a $100 million decentralized bond on its blockchain network has fueled recent excitement among Ethereum traders.
Over the weekend, Bitcoin regained the $5,000 mark.
Since falling below $50,000 a few sessions earlier, the leading cryptocurrency bitcoin regained the $58,000 level over the weekend. Traders’ purchasing pressure could push the cryptocurrency beyond the $60,000 mark. However, bitcoin is currently trading at a significant discount to its all-time peak of $64,895.22. This year has been historic for bitcoin and some altcoins, with crypto values reaching new heights.