On Monday, Bitcoin’s smaller rival, cryptocurrency Ethereum had surged past $3,000-level for the first time, setting a record high in a scintillating rally that outperformed other digital assets, as speculative bets ramped up that Ethereum could outshine its smaller peers in a decentralized financial system with Bitcoin trying to gain access to mainstream economy.
In point of fact, latest round of stunning rally in Ethereum which soared as much as 325 per cent this year thus far, came against the backdrop of a growing speculation that an increasing transition towards over-the-counter transactions or “DeFi” (Decentralized finance) where transactions usually take place outside mainstream banking system, could make Ethereum blockchain a trend-shifting platform.
Ethereum breaks past $3,000 on prospects of over-the-counter transactions
Citing statistics, Ethereum, which had outpaced a dazzling Bitcoin rally that shelved 95 per cent in gains this year so far, having been up by 325 per cent in 2021 as beforementioned, was last trading 10.09 per cent higher to $3,266.40 on late-afternoon US trading hours after hitting a record high of $3,344 earlier in the day, while bitcoin was down by 0.62 per cent to $56,645.50 and Litecoin added 6.13 per cent to $287.9.
Meanwhile, referring to Ethereum’s role in future “DeFi” where transactions could be made outside mainstream banking platforms, a managing director at Q9 Capital, a Hong Kong-based crypto private wealth manager, James Quinn said, “At first, the rally was really led by bitcoin because as a lot of the institutional investors came into the space, that would be their natural first port of call.
But as the rally has matured over the last six months, you have DeFi and a lot of DeFi is built on Ethereum”.