Ether, the native currency of the Ethereum network, continues to not only break records but also gain market share from bitcoin which was considered a golden child. Bitcoin just hit another all-time high near $70,000 the other day, but ether, the cryptocurrency that runs on the Ethereum blockchain, has continued to smash records and take market dominance away from bitcoin.
Ether has zoomed past $4,900 for the first time ever, according To its performance so far this year, compared to bitcoin’s 135 percent growth, reported CNN. The upsurge in interest in DeFi and nonfungible tokens (NFTs), which are mostly hosted on the Ethereum blockchain, and the increase of smart contracts indicate that the ether future is looking bright.
The market capitalization of ether has increased to roughly $575 billion for all coins in circulation, while bitcoin’s market cap is currently valued at around $1.3 trillion. The combined values of both cryptocurrencies are approximately two-thirds of the $3 trillion market.
In its most recent earnings report, Coinbase reported that 22% of trading volume was attributable to ether trades, whereas bitcoin accounted for 19% of volume. It’s the second quarter in a row that ether has outperformed bitcoin in terms of trade volume, and many believe it will continue in the future as DeFi adoption grows. With the recent introduction of bitcoin futures ETFs and their popularity, experts believe that an ether equivalent will appear in the future.
Grayscale has launched the first Ethereum fund in the United States, a vehicle that allows investors to gain early exposure to the network’s growth and promise. The Grayscale Ethereum Trust (ETHE) is designed to track the CoinDesk Ether Price Index and is benchmarked to the CoinDesk Ether Price Index.
The fund allows investors to get exposure to ether through a safe structure that is passively invested in Ethereum. Investors don’t have to buy, store, and safeguard ether (ETH) by gaining exposure in the form of security. Ether is kept in cold storage with Coinbase as the custodian.
It allows investors to have shares that are titled to their name, auditable, simple for financial and tax advisors to track, and easy to pass on. The Trust is a reporting company with the SEC under Section 12(g) of the Securities Exchange Act of 1934. The AUM of the fund is $14.9 billion, and it has an annual charge of 2.5 per cent.
About Ether
The transaction token for the Ethereum network is Ether. Due to the fact that the Ethereum network requires computational power (and that computing power is not free), all of the programs and services linked with it need it. Ether is a kind of payment used by network users to carry out their tasks on the network.
Ether, in a metaphorical sense, can be likened to the fuel of the Ethereum network metaphorically speaking. Ether keeps track of and makes it easier for all transactions on the network. This process is considerably different from that of a typical cryptocurrency. Ether does have certain qualities that make it comparable to other cryptocurrencies, such as bitcoin, albeit in different ways.
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