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GUANGZHOU, China – Ether, the digital coin associated with the Ethereum blockchain, hit an all-time high of $ 3,456.57 as the cryptocurrency continues to rally, which is up about 360% this year.
According to CoinDesk, the digital coin cut some of that profit in Tuesday afternoon trading in Asia and was trading at $ 3,271.90 at 12:12 pm.
Interest in cryptocurrencies has skyrocketed over the past year, and Bitcoin is constantly hitting new records. Its rise was driven by a number of factors, including rising institutional interest and the purchase of digital coins by large companies such as Tesla.
Bitcoin has been described as a “digital gold” or store of value in times of geopolitical turmoil or financial market volatility, as well as a hedge against inflation.
But Ethereum is different. It acts more like a platform on which developers can build applications. Ethereum is the name of the network or underlying blockchain technology, and ether is the digital currency used to operate the platform.
The so-called smart contracts are a key feature of Ethereum. These are contracts that can be executed automatically through code.
There is growing excitement about the use of Ethereum in so-called decentralized finance or DeFi applications. These are blockchain-based financial services such as lending that could theoretically bypass banks and brokerage companies.
Last month, the European Investment Bank said it had issued its first digital bond on the public blockchain using Ethereum.
The growing number of DeFi applications built on Ethereum and the growing institutional interest in this technology could be driving prices up rapidly.
“Thousands of developers are creating applications that decentralized recreate traditional financial products on top of Ethereum, and as more and more users join these applications, they need ETH (Ether) to conduct any transaction,” said Sergei Nazarov, co-author. is the founder of the Chainlink smart contract, said.
“Second, there seems to be a growing institutional interest in the public Ethereum blockchain as stakeholders try to find ways to leverage the public network.”