Ethereum’s cryptocurrency Ether (ETH) recently saw a surge in its value going over $4,000 on Monday, reported CNBC. The coin is now worth $4,141.99, showing an almost 7% increase within 24 hours after was valued on Sunday.
The world’s second-biggest cryptocurrency, which was launched in 2015, had always been behind Bitcoin (BTC), but with the saturation of BTC mining and trading, ETH is finally catching up as traders look for other options to invest in. This resulted in a 40% increase over time.
This $4,000-strong figure is seen as ETH’s highest valuation so far. It now has a market value of $483.4 billion, which is still a long way behind BTC, which has $1.09 trillion.
For context, the entire crypto market is worth $2.5 trillion, making BTC the owner of almost half the size. During the same valuation time, Bitcoin is worth $57,962.18 per coin.
The crypto market has rapidly grown over the past months as the financial markets provided clients exposure to non-fiat currencies. In fact, even Wall Street banks such as Goldman Sachs and Morgan Stanley made this move.
Moreover, corporate buyers have been investing in Bitcoin at the beginning of the year in light of projected inflation.
On the other hand, Ether gained momentum because of its decentralized finance model, which seeks to offer financial products similar to traditional ones, but in the Etherium blockchain. These products include contracts and applications stored through the blockchain.
Another significant factor in the prominence of Ether rests on the fact that the European Investment Bank owned by members of the European Union, issued two-year bonds worth $120 million, according to MarketWatch.
Bitcoin, while it is a decentralized model just like Ether, seeks to be an alternative currency, which could be used as a medium of exchange and a store of value.
Ether is expected to continue its growth and reach $5,000 according to deVere Group chief executive and founder.
Experts are also optimistic about Ether prices. AvaTrade chief market analyst Naeem Aslam noted, “The good thing is that it is still only a beginning for this rally as money continues to pour into Ethereum.”
He added, “In fact, there is strong evidence that traders and investors are actually liquidating small positions in Bitcoin and putting that money in Ethereum as they believe that this coin is still massively undervalued.”
