Smaller Bitcoin rival Ethereum, the second-largest digital asset by market valuation, surged to record closing highs for a third straight day on Monday, as investors continued to price in on a latest cohort of speculative bet that a likely growth in decentralized finance or DeFi, defined as the transactions that take place outside mainstream financial institutions, amid Bitcoin’s robust drive towards mainstream adoption, would likely to bid well for Ethereum given the crypto asset’s wide-ranging applications in DeFi or over-the-counter transactions.
Nevertheless, several analysts were quoted saying that the crypto asset might be overvalued at current levels. However, latest blowout rally in Ethereum’s valuations, which soared as much as 390 per cent thus far this year following a 480.8 per cent gain last year, came forth amid a blistering boom in DeFi transactions, most of which were reportedly taking place in Ethereum since Bitcoin, the original crypto asset, starts off gaining mainstream attraction with large Wall St.
lenders such as Goldman Sachs and Morgan Stanley beginning to offer Bitcoin derivatives to their clients.
Ethereum hits fresh record peak amid a boom in DeFi transactions
Citing statistics, while this report was being prepared, in late-afternoon US trading hours, Ethereum the second-largest crypto asset, was last trading 5.2 per cent higher to $4,133.40 after hitting an all-time high of $4,200 earlier in the session, while Bitcoin, the largest cryptocurrency having had market cap above $2 trillion, was last down 3 per cent to $56,632 after spiking to a three-week high above $59,600 earlier in the day.
Meanwhile, addressing to a likely upsurge in over-the-counter or DeFi transactions in Ethereum which take place outside legitimate financial institutions, a Chief Technology Officer at cryptocurrency exchange Bitfinex, Paolo Ardoino said, “The myriad possibilities of decentralized ledger technologies should be likened to a technological force of nature that will continue to disrupt finance and other businesses. ”