Ethereum has reportedly hit a new record on June 4, with a price up over 2,800 percent year-to-date. On Sunday, ethereum traded $250.41, a fresh recor
Ethereum has reportedly hit a new record on June 4, with a price up over 2,800 percent year-to-date. On Sunday, ethereum traded $250.41, a fresh record high. Ether is running on the ethereum blockchain, the underlying technology that supports the digital currency,
How is Ethereum achieving this?
Ethereum`s goal is to support the so-called smart contract applications, as the report noted. Many investors and corporations has been attracted to the cryptocurrency due to its practical features. However, there are other reasons that led to the rally.
To begin with, the Enterprise Ethereum Alliance (EEA) was recently established. Large industry players like JPMorgan, Microsoft, Intel and 86 others are working together on projects relying on the blockchain technology. This is legitimizing the technology and backing ethereum up.
Another possible reason may be the initial coin offering (ICO). Recently, more and more companies in the sector are raising money by selling digital “tokens”, which can be used to buy or invest in goods and services. Many of the companies are based on the ethereum blockchain. Thus, they utilize ether tokens that help to boost the cryptocurrency`s price.
According to cryptocurrency experts, further regulation may lead to a rising ethereum and bitcoin prices. Vitalik Buterin, the founder of Ethereum, has recently spoken to Russian President, Vladimir Putin. As Cointelegraph and cnbc.com reported, they discussed the possible application of the technology in Russia.
In the meantime, the trading volume of ethereum is largely coming from South Korea. More specifically, around 38 percent of it, as CryptoCompare wrote earlier.
“All major Asian exchanges, including ours, are currently overwhelmed by the sudden growth in our client base and trading activity.”, commented Aurelien Menant, founder and CEO of Gatecoin, a regulated bitcoin and ethereum exchange based in Hong Kong, as quoted by cnbc.com.
“Specifically, requests for more ether trading pairs seems to be a common theme.”, he added, while making clear that there is a raising interest from other countries.