The second-biggest cryptocurrency ether moved above $4,000 for the first time since May 15, with analysts citing frenzied demand for non-fungible tokens (NFTs) as a driver of recent momentum. The cryptocurrency, linked to the ethereum blockchain, was up 5.02% to $3,976.57. It has soared around 25% in the last 15 days. Cryptocurrencies have gained massive mainstream exposure this year as retail and institutional interest continues to grow.
Ether continues to remain in high demand as investors continue to pile into NFTs.
Joseph Edwards, head of research at cryptocurrency brokerage Enigma Securities, said ether was in high demand as investors continue to pile into NFTs, many of which are based on the ethereum blockchain.“It’s still primarily the NFT boom that’s driving markets – not directly. It’s bringing some speculative interest back in the door,” he noted. Several major names in the tech world have opined on NFTs and how they are useful and how they are not. Altcoins have also gained considerably in the last week.
Bitcoin breaks above $50,000
After a few consecutive days of losing value, bitcoin skyrocketed by more than $4,000 in just one day and broke above $50,000 yesterday. Most altcoins are also in the green, with ETH finally crossing $4,000 and Cardano marking a fresh ATH above $3. The leading cryptocurrency had its fair share of struggles in the past week or so. Last Monday, it briefly surpassed the $50,000 mark, but the bears didn’t allow any further gains. Despite retracing with a few hundred dollars since the intraday peak, BTC still remains above $50,000 at the time of writing on CoinMarketCap. Furthermore, its market capitalization has increased to nearly $950 billion.