Cryptocurrency ether hit a record high on Wednesday, taking gains this year to almost 500 per cent on the back of a growing interest in decentralised finance applications and increasing institutional interest in cryptocurrencies.
Ether, the secondbiggest cryptocurrency by market capitalisation after bitcoin, climbed to 4,372.35, eclipsing its previous record hit on Monday, and was last up 2 per cent. Bitcoin was down a touch at 56,240.
Ether has jumped almost 500 per cent against the dollar this year as the ethereum blockchain becomes more widely used by peertopeer or decentralised cryptocurrency platforms that enable cryptodenominated lending outside of traditional banking institutions.
The surge has also seen ether which in the crypto world is also widely referred to as ethereum outperform bitcoin, which has almost doubled in price this year as larger investors warm to the emerging technology.
US bank J.P. Morgan on Wednesday said the pace of evolution in the ethereum market has remained rapid and that there was still room for growth.
Open interest in CME Ethereum futures had increased to 540 million in three months, the banks analysts said in a note. A similar level of open interest in CME Bitcoin futures took more than two years after listing in 2017, they added.
Effectively, once Bitcoin futures became more accepted among institutional investors, they became more comfortable with cryptocurrencies paving the way for a more rapid acceptance of ethereum…