The second-largest cryptocurrency, Ether, soared to a new record on Monday, further eroding at Bitcoin’s domination in the cryptocurrency market.
Bitcoin’s rival, Ether, was trading above $3,100 on Monday, marking an 11% intraday increase, and a growth of more than 30% in the past week. Over the past twelve months, the cryptocurrency has quadrupled in value relative to bitcoin’s 100% jump, according to CoinMarketCap. Ether’s rapid rise has put its market cap at around $368 billion, exceeding major corporations including Nestle, The Walt Disney Company, and even the Bank of America.
The latest growth is largely due to advancements made to the ethereum blockchain, as well as a more pronounced movement towards decentralized finance (DeFi), which refers to transaction activity outside of the banking system. Moreover, Ether’s rapid rise suggests that there is room for more digital tokens to rise to the spotlight. As of current, bitcoin accounts for approximately 46% of the entire crypto market value— a significant decrease from the 70% that was noted at the beginning of the year.
Bitcoin is still the world’s largest cryptocurrency, but increased momentum across other tokens is creating more interest among investors. Crypto proponents argue that global investors are becoming more comfortable navigating the digital currency space, and using a variety of tokens to conduct transactions.
Information for this briefing was found via CoinMarketCap. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.