Ethereum soars above $ 4000 for the first time - NEW TECH 4YOU

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Monday, May 10, 2021

Ethereum soars above $ 4000 for the first time


Ethereum jumped above $ 4,000 on Monday to hit a new record, as the world's second largest cryptocurrency continues its continuous rise.

Ethereum has risen nearly 7 percent in the past 24 hours to $ 4,145, according to CoinGecko.

Its total market cap now stands at $ 476.3 billion, less than half the market value of Bitcoin's $ 1.1 trillion.

Cryptocurrency has seen a large rate of gains recently, as investors look to other cryptocurrencies for returns.

Bitcoin is down more than 2 percent in April, while Ethereum is up more than 40 percent.

The entire crypto market is currently worth about $ 2.5 trillion, against the backdrop of growing interest in this field.

Major investors and some corporate buyers, such as Tesla, flocked to Bitcoin earlier this year, viewing the digital currency as a potential inflation hedge as central banks around the world print money to mitigate the economic effects of the Coronavirus.

Major Wall Street banks like Goldman Sachs and Morgan Stanley have also sought to provide their wealthy clients with access to Bitcoin.

However, some investors still overlooked entering the crypto market, and Michael Hartnett, chief investment strategist at BofA securities, said: The bitcoin rally looks like the biggest bubble ever.

While Stephen Isaacs of Alvine Capital said: There are no such period essentials for this product.

The Ethereum network was founded in 2013 by Russian-Canadian programmer Vitalik Buterin and a group of other software developers, and it allows people to build applications on top of it.

While Bitcoin supporters view it as a store of gold-like value, Ethereum aims to be the infrastructure for a kind of decentralized internet that is not controlled by any central authorities.

The decentralized internet formed the basis for a growing trend in cryptocurrency known as DeFi, which aims to recreate traditional financial products using blockchain technology.

Ethereum is also taking advantage of the rise of NFTs, digital assets designed to represent ownership of unique virtual items, as many non-exchangeable tokens, such as CryptoKitties and CryptoPunks, operate on Ethereum.

However, this boom in activity has resulted in network congestion, and Ethereum is currently undergoing an ambitious upgrade that, in theory, allows for faster transaction times and reduces the amount of energy required to process transactions.

Both Bitcoin and Ethereum have attracted criticism from environmentalists about the impact of cryptocurrency mining on the climate.

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