Digital currency Ethereum hits a new all-time peak of $1938. In terms of market capitalization and volume, Ethereum stands as the second largest cryptocurrency. The world’s second biggest cryptocurrency owes it rise to increase in institutional demand. This increase comes a week after the Chicago Mercantile Exchange launched it futures. The futures launched will facilitate transactions on the Ethereum block chain. Ethereum or Ether; an interchangeable name for the cryptocurrency in the crypto world, was last up at $1936.94 by 4.6%.
Increase in institutional demand has also propelled a spike in the price of the world’s largest cryptocurrency Bitcoin. Bitcoin has now attained an all-time peak of $52, 640. The Bitcoin rally and its increase is believe to be a contributing factor to Ethereum’s increase. Jehan Chu, co-founder of Kenetic Capital; a digital currency focused venture capital and trading firm stated: ‘The ether slingshot is in motion, with the number two coin looking cheap and posed to surge relative to bitcoin’s $52k level‘.
Ethereum’s value as the world’s second largest cryptocurrency compared to Bitcoin, is not quite impressive. Notable individuals have expressed that Ethereum is being undervalued. Luis Cende, the co-founder of a decentralized application on the Ethereum blockchain called Aragon stated: “Ethereum is really undervalued, and I believe it has been…due to its more complex narrative.”
The complex nature has to do with Ethereum being decentralized. The Ethereum network is being powered by the digital coin Ether. The system allows developers to build apps upon Ethereum’s network. In that way, Ethereum works as a kind of decentralized software platform. Bitcoin on the other hand is designed to be just a currency or store of value and this makes Ethereum different from it. The similarity between Ethereum and Bitcoin is that they are both underpinned by blockchain technology.
Nevertheless, it is estimated that Ethereum will rise to an all-time high of $2500 in the next three months. Data from the Chicago Mercantile Exchange showed about 1,900 ETH futures contracts that were traded during the first five days following the launch. About 27% of volume were not from within the United States with more than 33% trading during non-US trading hours.