- Ether, the world’s second-largest digital coin, hit a record high ETH price of $2000.
- The rally in bitcoin, which exceeded $56,000 for the first time, helps to push up Ether.
- Ethereum 2.0, DeFi, and CME influence the Ethereum price surge.
Ether hit a new record of $2,033.08, up 6.18% in the last 24 hours, with a crypto market cap of about $233.3 billion.
Ether is the digital coin that powers the Ethereum network. It enables developers to build DApps upon its network. In that way, Ethereum works differently from Bitcoin as it is a decentralized software platform. While the latter is designed to be a currency or store of value. But, both work on so-called blockchain technology.
At least two factors have seemingly fueled Ethereum’s rise. First, retail and institutional investment in Bitcoin has helped lift interest in crypto more generally. As Bitcoin jumped from $32,000 to its current price of $55,000, many cryptos have more than doubled in price, including Ether.
However, Ether’s rising demand should not be ignored. At least three growing demand areas fuel the increase in Ethereum price: Ethereum 2.0 staking, decentralized finance (DeFi), and a newly formed corporate-focused ether market on the Chicago Mercantile Exchange (CME).