The second most popular cryptocurrency, Ether, has led to an increase in the market value of cryptocurrencies, which reached $ 2 trillion for the first time on Monday.
As the website revealed CoinGecko, the capitalization of the cryptocurrency market has doubled in just over 2 months as retail and institutional investors accumulate.
Bitcoin, the largest digital currency, accounts for over 50% of the total cryptocurrency capitalization. Bitcoin has raised over 100% this year alone and this has helped increase the cryptocurrency market.
See also: How to buy a Tesla car with Bitcoin?
Last month, bitcoin hit a record high of more than $ 61.000. The digital currency traded at around $ 58.800 on Tuesday, according to data from Coindesk.
The latest impetus in the encryption market, however, seems to have come from Ether, the digital currency that feeds the Ethereum blockchain.
Bitcoin also works with a technology called blockchain which is a way of trading using cryptocurrency. By comparison, the Ethereum blockchain is more like a software platform, allowing developers to build applications on it. Users can then spend Ether on these applications.
So-called smart contracts are a key feature of Ethereum. These are contracts that can be executed automatically using code.
The use of Ethereum in so-called decentralized financial applications or DeFi applications is becoming increasingly popular. These are blockchain-based financial services, such as lending, that could theoretically bypass banks and brokers. Users of these applications can trade using cryptocurrency.
Ethereum also has the underlying technology behind the recent trend for useless tokens or NFTs, a new type of digital component.
Ether hit an all-time high of $ 2.151,25 on Tuesday morning, according to CoinDesk, over 180% year-on-year. Digital currency is also of interest to companies. Chinese app maker Meitu bought $ 22,1 million worth of Ether last month, making it one of the first major companies to do so.