NEW YORK/TOKYO: Ethereum, the world’s second largest cryptocurrency in terms of market capitalisation, touched a new peak on Wednesday, with participants citing media reports about the European Investment Bank’s plans to launch a “digital bond” sale on the ethereum blockchain network.
Ether is the digital currency or token that facilitates transactions on the ethereum blockchain. In the crypto world, the terms ether and ethereum have become interchangeable.
Bloomberg reported on Tuesday, citing unnamed sources, that 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.
Ether hit a record high of $2,713.95 on Wednesday, following a more than 5% rally the previous day. It was last up 1.4% at $2,706.39.
Bitcoin, the world’s biggest crypto asset with more than $1 trillion in market capitalisation, regained the $50,000 mark this week. Bitcoin, was last up 1% at $55,630.82 but well below its record high at $64,895.22 set on April 14.
Danny Kim, head of revenue at SFOX, a full-service crypto broker, said reports on an EIB digital bond issuance has “triggered a bullish institutional use case for ethereum”.
He also cited the decline in supply of ethereum in the market, which has jacked up its price.
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