Ether — the second largest digital cryptocurrency by price and market capitalization has just broke a new record. The digital token surged to $1,936 on Thursday, in conjunction with the Bitcoin (BTC) bullish run.
While Bitcoin surged over 78% since the start of the year; Ether saw 160% increase. The Bitcoin rally had helped other altcoins surge especially with the growing financial institutions in cryptocurrencies.
Since the start of 2021, Elon Musk’s Tesla invested $1.5 billion in Bitcoin. On the other hand, MicroStrategy lifted its debt offering to $900 million to invest it in Bitcoin. Morgan Stanley also announced that they’ll be investing a breath-taking $150 billion in BTC.
Additionally, Bank of New York and MasterCard both announced that they will endore the digital currency. Consequently, the growing financial institution in Bitcoin helped drive the price of Ether to a new all time high — flirting with the $2000 mark.
“The ether slingshot is in motion, with the number 2 coin looking cheap and posed to surge relative to bitcoin’s $52k level,” Jehan Chu, co-founder of trading firm Kenetic Capital, told CNBC.
Ether, Ethereum and Bitcoin
Contrary to Bitcoin; Ethereum is not only a digital currency. Ether is the digital currency, whereas Ethereum is the network. Ether powers the Ethereum network and acts as a decentralized software platform. In other words, this allows developers to build apps on the Ethereum network.
Bitcoin’s intended use is as an alternative to fiat money or even gold, though it remains a decentralized digital token. Nevertheless, the two largest cryptocurrencies are both linked to the blockchain technology.
In conjuction with the Ether rally – the cryptocurrency’s developers have been doing some work in the background. Last year, Ethereum saw a development in the network called Etheruem 2.0. The upgrade aimed to help both the Ethereum network and Ether the digital token.
In conclusion, CME (Chicago Mercantile Exchange) derivatives exchange announced the launch of Ether futures. The move aims to bring more institutional investors to invest in the digital token.
“Despite ongoing complaints about Ethereum network fees, it remains the go-to destination for all blockchain applications,” Chu added.