Ether crosses $3000 for 1st time as Bitcoin’s value falls

By Amirtha P S, Desk Reporter
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As Bitcoin’s domination over total cryptocurrency market value declines, its next-biggest rival Ether hit a record high of $3,000, signaling room for more than one winner among digital tokens when the sector gains more acceptance.

The world’s largest digital currency now accounts for about 46 percent of the total crypto market value of $2.3 trillion, down from about 70 percent at the start of the year, according to tracker CoinGecko. 

The second-ranked Ether jumped 15 percent and a group of others outside the top few has doubled its share over the same period to 36 percent. According to Bitstamp exchange, Ether rose 2 percent to hit the milestone early in Asia trade.

Even though Bitcoin remains the biggest cryptocurrency, the momentum in other tokens is drawing more interest, such as Ether, which breached $3,000 for the first time extending its last week’s rally in the wake of a report that the European Investment Bank (EIB) could launch a digital bond sale on the Ethereum blockchain network.

Crypto proponents claim that the investors are getting more comfortable with a variety of tokens, while critics contend the sector may be in the grip of a stimulus-fueled mania. “Ethereum is rising and not much seems to be in its way,” Edward Moya, a senior market analyst at Oanda Corp, stated.

The current distribution of market share also shows an April shakeout in the sector. Bitcoin has yet to recover all the ground it lost after falling from the mid-April record of almost $64,870.

Ether is currently occupying the limelight. An upgrade of the affiliated Ethereum blockchain as well as the network’s popularity for financial services and crypto-collectibles are among the factors for the rally.

Other cryptocurrencies have also marked an increase in value. The price of Binance Coin is up 3,460 percent over the past 12 months, according to CoinGecko. Dogecoin, a token that started as a joke in 2013 but now a social-media favorite, has surged 15,000 percent to a market value of around $50 billion.

Related: Musk says sale of 10% Bitcoin holdings generated $101mn income for Tesla