On strong optimism surrounding the most widely used blockchain network, Ethereum, the second-largest cryptocurrency, rocketed to a new high above $4,400 on Friday.
The digital asset rose 4.8 percent to $4,459.20, breaking the previous high of $4,379.62 established in May. As of 2:41 p.m. in New York, the token was trading at $4323.93. Other tokens, such as Binance Coin and Solana, have risen in value. Ether is now valued at almost $520 billion.
Ether is the foundation of the Ethereum Network, which is the most widely used blockchain for hundreds of decentralized apps. This week, the system received a boost thanks to a successful upgrade that made it speedier and more energy-efficient.
ETH/USD 1 Day Price Chart: Source- Coinmarketcap.com
According to Bybt statistics, outstanding Ether futures increased to $12.5 billion, surpassing the May high and setting a new record high. On online exchanges, funding rates — or the cost of keeping a bullish bet open — have risen this month, similar to Bitcoin. The futures curve on CME has also steepened, indicating that traders are optimistic about the price outlook.
In a study released Thursday, digital asset strategists Sean Farrell and Will McEvoy wrote, “On-chain activity measures for Ethereum appear to have found support and are nearing multi-month highs.” The strategists noted that metrics such as transaction rate, new addresses, and active addresses have all exhibited a robust increase this month after seeing dips in May.
Meanwhile, some observers believe there is a link between the popularity of the Shiba Inu coin and Ether’s performance.
According to Sam Doctor, Ethereum’s EIP 1559 upgrade was introduced in August, and it burns a percentage of the fees paid to miners, lowering net issuance as a function of network utilization.
“If Shiba Inu generates a lot of traffic, it causes network congestion and contributes to the burning of more ETH,” he explained. “As a result, the net growth in ETH in circulation is slowed. The price of Ether was likely driven up by a lack of ETH supply paired with increased network activity.”
Following the launch of the first Bitcoin-linked exchange-traded fund in the United States, Bitcoin surged 40% to a new high of about $67,000 this month. In New York trade, the world’s largest digital currency was 1.6 percent higher at $62,405.