Cryptocurrency ether has surpassed $4,000 for the first time since December and appears poised to continue its upward trend.
The world’s second-largest digital currency’s price is being fueled by growing demand from companies accumulating the token on their balance sheets.
On Sunday, ether was trading around $4,200. This makes ether almost three times its value at its low point in April. Bitcoin was trading at over $118,000. That price is therefore slightly off the record high of around $123,000 reached last month.
Ether’s rise coincides with a broader shift within the crypto world, with institutional investors and developers looking beyond Bitcoin. “Bitcoin’s dominance is starting to decline significantly as banks, fintechs, and large corporations embrace stablecoins,” says an expert from market research firm VanEck.
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The US Congress recently passed the first federal legislation regulating so-called stablecoins, or digital currencies pegged to a fixed value. This paved the way for the broader use of crypto technology in everyday finance.
Many stablecoins run on technology from the Ethereum network. Ether is the cryptocurrency and currency used on that network for processing transactions. Ether hasn’t yet reached a record high. Its value dates back to 2021 and is almost $4,900.
