tech

Ethereum breaks past $3,000 to quadruple in value in 2021

16 Comments

Cryptocurrency ether broke past$3,000 on Monday to set a new record high in a dazzling rally that has outshone the bigger bitcoin, as investors bet that ether will be of ever greater use in a decentralised future financial system.

Ether, the token transacted on the ethereum blockchain, rose 3% on the Bitstamp exchange to $3,051.99 by lunchtime in Asia. It is up more than 300% for the year so far, easily outpacing a 95% rise in the more popular bitcoin.

In part, the big rally is a catch-up to late 2020 gains in bitcoin, said James Quinn, managing director at Q9 Capital, a Hong Kong cryptocurrency private wealth manager.

It also reflects improvements to the ethereum blockchain, he said, and a growing shift towards "DeFi", or decentralised finance, which refers to transactions outside traditional banking for which the ethereum blockchain is a crucial platform.

"At first, the rally was really led by bitcoin because as a lot of the institutional investors came into the space, that would be their natural first port of call," Quinn said.

"But as the rally has matured over the last six months, you have DeFi and a lot of DeFi is built on ethereum."

The launch of ether exchange-traded funds in Canada and surging demand for ether wallets to transact non-fungible tokens such as digital art have also pushed up the price.

The ether/bitcoin cross rate has soared more than 100% this year and hit a 2.5-year high on Sunday, pointing to a degree of rotation into the second-biggest cryptocurrency as investors diversify their exposure.

"Surging DeFi volumes continue to push ethereum prices higher as investors gain confidence in crypto and see ethereum as a safe second-place asset," said Jehan Chu, managing partner at Hong Kong blockchain venture capital firm Kenetic Capital.

Illustrating the momentum for such new transactions, Bloomberg reported last week that the European Investment Bank plans on issuing a digital bond over the Ethereum blockchain, while JP Morgan plans a managed bitcoin fund.

Bitcoin, the world's biggest crypto asset with more than $1 trillion in market capitalisation, regained the$50,000 mark last week and hovered around $58,000 on Monday, up about 3% but well below its record high at $64,895.22.

The U.S. dollar was broadly steady.

© Thomson Reuters 2021.

©2021 GPlusMedia Inc.

16 Comments
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Cryptocurrency ether broke past$3,000 on Monday to set a new record high in a dazzling rally that has outshone the bigger bitcoin, as investors bet that ether will be of ever greater use in a decentralised future financial system.

0 ( +0 / -0 )

What a crock. bubbles bubbles everywhere. I doubt that the vast majority of people buying that have an interest in its use in a decentralised financial system.

-2 ( +2 / -4 )

Bubble is what people who aren't invested say.

0 ( +4 / -4 )

Bubble is what people who aren't invested say.

Hmm, no. Good luck paying me in cryptocurrency, no matter how much the paper value is...

2 ( +6 / -4 )

"Bubble is what people who aren't invested say."

Couldn't agree more with @Hello there. Always the easy and lazy way to comment when they themselves are too scared or lazy to invest.

Further more, you don't need to have an interest in DeFi to understand that it is part of our future and therefore a smart investment.

2 ( +4 / -2 )

Seems a good, solid investment. Cryptocurrencies are definitely the way of the future, dont listen to the technophobes. People including me should try and get in ASAP before prices hit much higher.

1 ( +3 / -2 )

ETH is a great investment in IMHO - I bought at $1200 so have done well (took some profits at $2500). Its is the future of finance for sure - imagine being able to send money based on a set of programmable conditions (smart contracts) or lend and borrow money without the need for a bank or any kind of middleman (DEFI). Imagine being able to earn between 3-7% interest just by depositing ETH (staking) for a set period of time. ETH is literally an internet computer accessible to anyone that will replace large portions of the banking sector.

2 ( +3 / -1 )

I found the future crypto who may equal in value with bitcoin.

The largest social cryptocurrency

https://minepi.com/poocha

use the link above to join it with invitation code " poocha"

Download from play store or website

start mining from day one. Nothing to pay.. try it if you like it ..

currently 30 million people mining ..

join it now

0 ( +2 / -2 )

It's sad, this year video cards won't have a sane price tag.

0 ( +0 / -0 )

I still cannot figure out why one would want a cryptocurrency for purposes other than speculation (acceptable), money laundering, cyber ransom or tax evasion (which are not).

-1 ( +3 / -4 )

I found the future crypto who may equal in value with bitcoin.

The largest social cryptocurrency

https://minepi.com/poocha

use the link above to join it with invitation code " poocha"

Download from play store or website

start mining from day one. Nothing to pay.. try it if you like it ..

currently 30 million people mining ..

join it now

No thanks, stop fooling people..

Millions of sheeps has invested in that virtual farse and lose the investment

Like It or not it's a bubble based in especulation over a virtual thing that DON'T EXIST..

Wannabe millionaires with no hard work, this is the juvenile trend from a silly world of spoiled sheeps..

-1 ( +3 / -4 )

mmm - so @Zoroto. You had a choice between Japan and Australia, both of which have oppressive tax regimes are you are against being paid a in a little crypto on the side to hide from the taxman. OK.

2 ( +3 / -1 )

ETH is one of the best investments I've done in my life, last bull market Ethereum paid for my house, an overpowered German vehicle and allowed me to flip the bird to my boss and go independent. This one will probably mean retirement. Unlike Bitcoin, ETH has lots of use cases and most of DeFi is being built on Ethereum. Do not miss out!

3 ( +4 / -1 )

What's wrong with trying to make a profit on something with your own money, that's the whole point right, to make more money than you put in. Stocks, real estate, crypto, tulips, etc it's all just speculation really, nobody knows what will happen tomorrow. You have to be willing to take the chance and roll the dice. Some are riskier than others yes but still, everyone has their own risk tolerance level and nobody can say who is right or wrong there. If you make money then great job, just understand the risks going in and have an exit strategy. I've been in it since early 2017, what a ride and the account is still growing, have taken profits along the way too.

0 ( +1 / -1 )

@zoroto sure. Going to the bank is much more convenient. Gtfo

0 ( +1 / -1 )

Withdrawing was the biggest problem for Bitcoin or other Cryptocurrency because the maximum amount of Bitcoin was $ 20000 and the other may be less.

0 ( +0 / -0 )

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