Ethereum hits new all-time high of $3,400 as price surges by 350% this year

Ethereum: Cryptocurrency price figures spike overnight

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The cryptocurrency that is linked to the Ethereum blockchain reached the staggering price of $3,456.57 (£2,488) on Tuesday. Ethereum differs from bitcoin as it is not just seen as a store of value and hedge against inflation but also as a burgeoning technology that will act as the foundation for a new global decentralised financial system. The Ethereum network has the ability to create so-called smart contracts that can be automatically executed using code.

The potential of the cryptocurrency is being eyed up by large institutions both public and private.

Even state-backed entities, such as the European Investment Bank, are eager to utilise the new technology.

In April, the European Investment Bank said it issued its first-ever digital bond on a public blockchain using the Ethereum network.

Speaking to Express.co.uk Nick Spanos, founder at Bitcoin Centre NYC, said: “Besides transaction fees dropping significantly in the past months fueling increased retail transactions, Ethereum’s surge above $3,000 (£2159) all-time high is also influenced by the anticipation of two key events designed to further lower fees and deflate the coin.

“The London hard fork which includes the EIP 1559 upgrade is one.

“The other is the rollout of ETH 2.0.

“Both of these are on investor’s minds, giving them the reason to buy up now before the prices skyrocket.

“From the pace, Ethereum has gathered in recent days, its continued growth path is certain.

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“Levels above $5,000 (£3599) are now the new target.

“In comparison to Bitcoin, Ethereum has broken off the dominance and is currently outperforming the premier cryptocurrency by 26 percent to 10.69 percent on a week-to-date basis.”

Speaking to Express.co.uk Justin Chuh, Senior Trader at the regulated digital asset investment manager Wave Financial described DeFi networks such as Ethereum as “booming in general”.

He added: “Defi networks have a total value locked breaking $120 billion, (£86.39 billion).

“Most of the action seems to be running on Ethereum.

“Ethereum has at least $70 billion (£50.4 billion) in its decentralized apps.

“Lending and decentralised exchanges are the most popular, having $36.7 billion (£26.42 billion) and $23.9 billion (£17.21 billion) locked in each, respectively.”

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