Ether surged above its all-time high record on Monday. The price increase followed a higher burn rate of tokens and new money flow into the market. This also contributed to pushing Bitcoin towards a new all-time high, turning the cryptocurrency market value to $3 trillion for the first time.
Over the past 24 hours, Bitcoin was last up 6.5% to $65,884 while Ether was up 2.9% surging by as much as 4.6% to a record high of $4,762 on Coinbase.
Ether’s price increase followed the rapid burn rate of tokens on the network. The Ethereum network burned 800,000 ethers during the last three months, according Freddie Evans, Sales Trader at UK-based digital asset broker GlobalBlock.
“The price of ether is increasing with help from the continuing burning reducing supply and anticipation for eths move to proof of stake in the new year moving ether to a far less energy-intensive system expected to reduce ethereum’s energy usage by 99%,” Evans said.
Furthermore, the launch of an ether backed exchange traded fund might have also contributed to the price increase. According to Bloomberg analysts last week, a first Ethereum futures–based exchange traded fund could launch in the 1st quarter of 2022.