© Reuters. FILE PHOTO: A representation of Ethereum virtual currency is seen in front of a stock chart in this illustration taken February 19, 2021. REUTERS / Dado Ruvic / Illustration
SINGAPORE (Reuters) – Cryptocurrency ether topped $ 4,000 on Monday, climbing to a new high for a third consecutive session on bets it could find new uses, lifting other digital currencies in its wake .
hit a three-week high and a single parody coin dogecoin stabilized, stopping a steep decline after comments from Tesla chief Elon Musk tumbled it down on Sunday.
Ether, traded using the Ethereum blockchain, was last up around 6% on the day on the Binance exchange where it hit $ 4,119 around noon in Asia. Bitcoin rose to $ 59,603 and dogecoin stabilized around $ 0.54.
Bitcoin has doubled, ether has more than quintupled this year, and dogecoin more than a hundred times as a euphoric mood spread from bitcoin to other crypto assets.
“I think (crypto) has a lot more institutional involvement than people who haven’t followed the market believe,” said Chris Weston, head of research at Pepperstone brokerage, noting significant liquidity in the market. weekend.
“And everyone’s been in Ethereum. It’s not a meme joke coin, it actually has some application utility,” he added, referring to his role in the rise in non-banking transactions.
The Ethereum blockchain was recently upgraded, which traders believe could make it a central player in a trend called ‘DeFi’ or decentralized finance, where digital platforms are reducing banks’ dominance over financial transactions.
The sum of ether tokens in circulation is $ 477 billion according to CoinMarketCap, compared to $ 1.1 trillion for bitcoin and $ 69 billion for dogecoin.
The dogecoin trade, launched as a joke currency with a dog mascot, has worried analysts as it is virtually impossible to spend and the earnings are driven by a speculative frenzy.
It fell a third in Sunday trading after Musk, a crypto investor, described it as a “scramble” during a TV appearance, but he appeared to find support after he tweeted that his rocket company SpaceX would accept it as payment.
“You really couldn’t make it all up,” wrote Michael Every, senior macroeconomics strategist at Rabobank, in a note to clients.
“It’s not all that fun for an SEC already signaling that it will act on crypto, and looking at Saturday trading… forget the space: it’s a world that eats a doge dog at the end. “
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