Ethereum price hit an all-time high of $3,456.57 as the cryptocurrency extends a rally that has seen its price gain around 360% this year. Interest in cryptocurrencies has surged over the past year, with bitcoin continuously pushing new record highs. A number of factors, including rising institutional interest and major companies such as Tesla buying bitcoin, have been credited with its rise.
Institutional interest in crypto continues to increase.
As reported by CNBC, 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, which could help bypass banks and brokerages. Last month, the European Investment Bank said it issued its first-ever digital bond on a public blockchain using Ethereum. A rising number of DeFi applications built on the Ethereum network and growing institutional interest in the technology could be behind the rapid price rise.
Bitcoin continues to trade around $56,000.
The price of the leading cryptocurrency bitcoin reclaimed the $58,000 mark over the weekend after having slipped below $50,000 a few sessions ago. However, at the time of writing, BTC is changing hands at just below $56,000. Bitcoin is still well below its record high at $64,895.22. This year has been unprecedented for bitcoin and some altcoins as crypto prices went on touch record highs.
Sergey Nazarov, the co-founder of smart contract company Chainlink, said, “Thousands of developers are building applications that recreate traditional financial products in decentralized ways on top of Ethereum, and as more and more users pour in to interact with these apps, they require ETH (ether) to conduct any transaction.”