The cryptocurrency ether hit a fresh all-time high on Friday, surging past $1,700 for the first time.
Ether, which is the world’s second-largest digital coin by market value, climbed 11.2% to a price of $1,743 at around 10:30 a.m. ET, according to data from CoinDesk.
It comes after bitcoin, the most valuable virtual currency, hit a record high close to $42,000 last month.
Bitcoin more than quadrupled in price over the course of 2020, and is up 29% since the start of 2021. Ether has risen about 129% year to date.
Ether has been steadily rising this week as investors await the highly anticipated launch of ether futures contracts from the Chicago Mercantile Exchange next week.
Trading in ether futures is set to start Monday. The CME launched bitcoin futures over three years ago, at the peak of that cryptocurrency’s 2017 rally.
Some investors believe that futures and other crypto-focused derivatives products will give institutional investors more confidence to invest in the space.
Ethereum, ether’s network, was created after bitcoin in 2013. The main difference it has with bitcoin’s blockchain is the ability to support applications.
Crypto investors said another factor potentially boosting ether was the start of a major upgrade to the Ethereum blockchain, called Ethereum 2.0. Believers in ether hope the upgrade will make Ethereum faster and more secure.
The total market value of all cryptocurrencies combined hit $1 trillion last month, as bitcoin’s price surged to records. Bitcoin bulls say it’s gotten a boost from institutional demand, as well as the perception that it is a store of value similar to gold.
But skeptics like economist Nouriel Roubini say bitcoin and other cryptocurrencies have no intrinsic value. A recent Deutsche Bank survey found investors view bitcoin as the most extreme bubble in financial markets.
Reference: CNBC
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