Ethereum does not hold its highs and dogecoin soars thanks to eToro

Ethereum does not hold its highs and dogecoin soars thanks to eToro

Ethereum has risen so far this year by more than 325% and surpasses its all-time highs reached this Monday at $ 3,000. This Tuesday it is trading at $ 3,470 with rises of more than 10%.

Investors argue that ethereum could have even greater use in a future decentralized financial system than bitcoin.

Ether, the “token” traded on the ethereum blockchain platform, advances 325% so far this year, far exceeding the advance of a more popular cryptocurrency such as bitcoin.

According to statements by James Quinn, managing director of Q9 Capital, collected by Reuters, the ether advances are a partial reflection of the late 2020 bitcoin gains.

It also shows improvements to the ethereum blockchain, he noted, as well as a growing shift towards “DeFi”, or decentralized finance, which refer to transactions outside of traditional banking and for which ethereum is a crucial platform.

The launch of ether-traded funds in Canada and the rise in demand for wallets to transact with “tokens” non-redeemable like digital art could have also brought up the ether.

“Thousands of developers are creating applications that recreate traditional financial products in a decentralized way on Ethereum, and as more and more users enter to interact with these applications, they require ETH (ether) to carry out any transaction”, explains to CNBC Sergey Nazarov, co-founder from smart contract company Chainlink.

Dogecoin rises 27%

The multi-asset investment platform eToro has incorporated the dogecoin token on Tuesday due to strong customer demand, the company announced in a statement.

eToro highlights that dogecoin was created by software engineers with the goal of becoming a way to tip content creators on social media.

The token rose to fame due to the rise in its price due to the action of the Reddit forum WallStreetBets in late January, which caused it to skyrocket from $ 0.007 to $ 0.04. This Tuesday it is trading at around $ 0.48, registering a rise of 27% days after Tesla CEO Elon Musk posted on Twitter calling himself ‘dogefather’.

These latest rises make dogecoin is already worth more than listed companies such as Banco Santander, BBVA, Vodafone, Twitter, Ford or ING. Dogecoin has a capitalization of $ 63.4 billion, while Ethereum rises to $ 397.111 million.

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