Ether, which is the coin attached to the blockchain of Ethereum has already hit a record high of $3,456.57- with the cryptocurrency extending its rally to over 350% for this year. The coin did come across some of the gains it received on the morning trade of Tuesday- with a trading value of $3,369.74, according to data from CoinDesk.
Ethereum’s Price Rise Can Be Attributed To Several Factors
Most of the interest taking place in the cryptocurrency sector has already increased over the year with Bitcoin surging through the records. There have been a lot of other factors as well with Tesla buying stakes in Bitcoin and an increase in the institutional interest also crediting to its increase.
But Ethereum is a completely different sort of cryptocurrency. Contrary to Bitcoin, Ether is usually more of a platform that allows developers to build their software upon. The name of this network or the blockchain technology that provides the framework is Ethereum, with the cryptocurrency called Ether.
One of the key features of Ether is the smart contract. Such a contract can be readily used by just executing a simple code. There is a lot of excitement around the use of this platform in the DeFi sector, for these blockchain services are used in financial institutions along with lending. For, such a blockchain will be able to bypass several brokerages and banks.
Just the previous month, the European Investment Bank decided to issue the first digital bond using Ethereum as its public blockchain. The increase in the price rise of this blockchain can be attributed to the institutional interest in the technology that governs the blockchain.
According to Sergey Nazarov, the co-founder of Chainlink has maintained that there are several developers who have been installing applications that would be recreating the financial products which find their ways to the top of this blockchain.