Ethereum, the second-largest cryptocurrency by market capitalization, was up on Wednesday, trading around $2,589.10 as of 10.00 A.M East African Time, a 1.4% rise following a more than 5% rally the previous day.
Ether rose Tuesday to a record high price near $2,700 after a powerful three-day rally.
The new high came after three straight daily gains totalling 19%. The move extended the cryptocurrency’s stunning rally this year.
On Tuesday, Bloomberg reported that the European Investment Bank’s plans to launch a “digital bond” sale on the ethereum blockchain network. The EIB plans to issue a two-year 100-million euro digital bond, with the sale to be led by Goldman Sachs, Banco Santander, and Societe Generale, according to analysts.
Analyst have attributed the bullish trend to the reports on an EIB digital bond issuance and a decline in the supply of ethereum in the market, which has jacked up its price.
ETH price has tripled so far in 2021, in part due to trader enthusiasm over growth in decentralized finance and non-fungible tokens, both of which use the ETH blockchain.
Bitcoin Follows Ether’s Gain
Meanwhile, bitcoin the largest cryptocurrency by market capitalization hit the $55K mark on Tuesday a powerful reversal after prices fell as low as $47,272 around 23:00 GMT (6 PM ET) Sunday.
Currently, bitcoin is trading at $54,252.25, a 0.71% decline as of 10.00 AM East African Time.
Analyst have expressed hope in the performance of the digital currency, saying it could hit the $56k mark soon.
“Dumps and recoveries are just part of the crypto market. I think the weekend sell-off was overdone, personally, so a bounce back makes sense,” Stefan Coolican, Chief Financial Officer, investment firm Ether Capital
The boost in the digital currencies was also attributed to JPMorgan Chase news that it will offer an actively managed bitcoin fund to its clients later this year, a move that would signal a significant change in focus for a bank whose CEO called bitcoin a ‘dangerous fraud less than four years ago.
The fund will be offered to clients in JPMorgan’s private wealth division.