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Ether, the world’s second largest cryptocurrency, hit an all-time high on Wednesday, catching up with the Bitcoin rally and capitalizing on news of wider blockchain adoption.
The ether token, which underpins the ethereum blockchain network, hit $ 4,643 in Asian hours, topping the previous day’s $ 4,600 and bringing the week’s earnings to over 10%.
Since bitcoin, the world’s largest cryptocurrency, hit its record high of $ 67,016.5 on October 20, other tokens on the base layer of blockchain networks, known as layer 1 networks , have grown.
“The correlation between crypto and stocks and risk sentiment is high,” said Danny Chong, managing director of decentralized asset-tracking platform Tranchess, which expects further gains in the quarter.
“Everyone expects a bull run in the absence of negative news,” Chong said. “To decide the depth of the movement, you have to ask yourself what can bring it down?”
Bitcoin (BTC) was trading around $ 63,078 and is up about 117% this year, while ether has increased six-fold.
“Since the market reversal in late September, the strength of the aether has grown at the same rate as BTC and other majors,” said Ryan Rabaglia, managing director and global head of trading of digital asset platform OSL.
“Ethereum has been the clear winner of Layer 1 for what we believe to be a substantial shift in a potentially prolonged improvement in market sentiment. Ethereum will also continue to play a major role in building the NFT and metaverse ecosystem,” did he declare. .
The constant flow of information about the adoption of cryptocurrency by banks, the growth of non-fungible tokens on virtual gaming platforms, the launch of US ETFs based on bitcoin futures and the need for Investor diversification in an uncertain interest rate environment have pushed several blockchain tokens, notably bitcoin and ether, up since October.
There has also been growing interest in smaller tokens after Facebook Inc rebranded itself as Meta to focus on creating the “metaverse,” a shared virtual environment.