Technology

Cryptocurrency Ethereum hits another record high

Ethereum

On Thursday, Ethereum, the world’s second-largest cryptocurrency by market capitalization, hit a new high, with participants quoting media reports about the European Investment Bank’s intentions to sell “digital bonds” on the Ethereum blockchain network.

Ether is a digital currency or token that enables ethereum blockchain transactions. The phrases ether and ethereum have become interchangeable in the crypto world.

As per analysts, the EIB expects to sell a two-year 100-million euro digital bond, according to Bloomberg, citing unidentified sources. Goldman Sachs, Banco Santander, and Societe Generale are expected to lead the offering.

Read more: Cryptocurrencies Crash After Hitting All-Time Highs

Following a more than 5% rally the day before, Ether reached a new high of $2,800 on Thursday. It was last trading at $2,713.95, on Wednesday.

Reports on an EIB digital bond issuance have “triggered a bullish institutional use case for ethereum,” according to Danny Kim, head of sales at SFOX, a full-service crypto broker.

He also mentioned how ethereum’s price has risen due to a decrease in supply on the market.

“The sum of ethereum on exchanges continues to fall, and it is at its lowest level in a year,” Kim said. “With less stock available on the exchange, a big sell-off is less likely.”

Investors are using ether to purchase virtual art or land in the form of non-fungible tokens (NFTs) on platforms like SuperRare and Decentraland, driving up demand for the token.

On Monday, news that JPMorgan Chase (JPM.N) is preparing to deliver a controlled bitcoin fund boosted digital currencies, the latest sign that what many consider a risky investment is gaining institutional credibility.

Bitcoin, the world’s most valuable crypto asset with a market capitalization of more than $1 trillion, reclaimed the $50,000 mark this week. Bitcoin was last up 1% at $55,630.82, but still well below its April 14 peak of $64,895.22.

Goldman Sachs reopened its cryptocurrency trading desk on March 1, just weeks after Tesla revealed it had bought $1.5 billion in bitcoin, causing the cryptocurrency to surge.

However, cryptos have encountered some pressure after US President Joe Biden announced plans to increase capital gains taxes, a step that could stifle investment in digital assets.

To Top