Ether, the cryptocurrency based on the Ethereum blockchain, has soared in price to become the second-largest digital currency, next to Bitcoin.
On Thursday morning, Ether’s price per digital coin rocked to around $2,800, according to Coin Desk’s data. It’s still a long way behind Bitcoin, with its hige price of $54,471 per coin, but as Ether rose Bitcoin’s value dropped.
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The reason for this rise, as CNBC reports, is the European Investment Bank announcing on Wednesday that it has issued its first ever digital bond on the Ethereum network.
With plans to price €100 million worth of Ethereum bonds, which will be overseen by the likes of Goldman Sachs, Banco Santander and other investment banks, the digital bonds have had the effect of boosting confidence in Ether’s underlying infrastructure. The price of the cryptocurrency then jumped significantly.
As a result, Ether has snapped up some of Bitcoin’s cryptocurrency market share, which fell below 50% for the first time since August 2018. Ether’s overall $322 billion market value is but a third of Bitcoin’s. But less than 12 months ago, Ether was trading at less than $200 per coin, so its rise in value has been stratospheric.
Cryptocurrencies are notoriously volatile. But with big financial powers showing an increasing interest in them, such volatility could be buffered somewhat, though we would not treat investments in any cryptocurrency lightly.
There’s some buoyancy in other cryptocurrencies as well, with Binance Coin and cardano all seeing spikes in value, though not as significant as Ether, in the past day or so.
Ether seems to be the one to watch, as the Ethereum network is being built out to enable faster transactions that require less computing power to process. And there are developers building apps on the Ethereum network, thus seeing its appeal increase as a platform.