Ethereum reached an all-time high on Thursday as Bitcoin’s dominance in the cryptocurrency market waned.
The world’s second-largest digital currency by market value jumped to a new record of $ 2,800, Thursday morning.
Bitcoin, the world’s largest digital currency by market value, was trading at just under $ 54,471.
This step comes after that Advertise The European Investment Bank on Wednesday released its first-ever digital bond via blockchain Ethereum, the primary network for digital currency.
This led to speculation that the currency is gaining momentum among major financial institutions, and most major cryptocurrencies were trading higher on Thursday, buoyed by the rise in Ethereum.
Bitcoin is down nearly 16 percent from an all-time high of nearly $ 65,000 earlier this month.
The currency is still up nearly 90 percent so far this year, on the back of increased interest from institutional investors and corporate buyers such as Tesla.
Meanwhile, some investors warned of a bubble in the cryptocurrency market, and Dogecoin rose on Wednesday after supportive tweets from celebrities, such as: Elon Musk and Mark Cuban.
A lot of other altcoins have also risen this year, and this has brought Bitcoin’s dominance in the cryptocurrency market down to less than 50 percent over the past week for the first time since August 2018.
The first time Bitcoin’s market share fell below this level was in 2017, before a major drop in cryptocurrency prices is now referred to as crypto winter.
But bitcoin bulls assert that things are different this time, as the rally is driven by institutional demand rather than retail investors.
Cryptocurrency skeptics say Bitcoin and other digital currencies are a speculative bubble.
Ethereum may come after Bitcoin, but there are some major differences between the two currencies, and for example, Ethereum has many developers creating applications across its network.
One common trend in the so-called decentralized application space is NFT, or non-exchangeable tokens, which are digital assets intended to represent ownership of rare virtual items, and many non-exchangeable tokens rely on Ethereum.
Ethereum is also undergoing a major upgrade that pushes it away from Bitcoin, theoretically allowing for faster transaction times and reducing the amount of energy required to process transactions.
With the network upgrade, Ethereum in particular is proving its use case, and as developers pile around it, it’s no wonder it’s gaining so much traction for investors.