Bitcoin alternatives: Ethereum cryptocurrency rises to record high

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Cryptocurrency Ethereum: 460 percent up

Photo: DADO RUVIC / REUTERS

The price movements of the largest cryptocurrencies are still very changeable - in both directions. The soaring rise of the digital currency Ethereum continues unabated. A week after jumping above $ 3,000, the second most important crypto asset also passed the $ 4,000 mark. Due to the record high of 4155.65 dollars, the plus since the beginning of the year adds up to around 460 percent. Bitcoin comes to around 100 percent in the same period.

Many experts believe a further increase in value is possible.

"The rally has only just begun," believes the chief market analyst of the brokerage house AvaTrade, Naeem Aslam.

The inflow of capital is unbroken, investors tend to see Ethereum as undervalued.

Institutional investors are more active in cryptocurrencies than those who don't follow the market believe, said Pepperstone's chief analyst Chris Weston.

Ethereum is not a fun motto, "but has technical application possibilities".

Unlike Bitcoin, Ethereum was not designed as a pure means of payment.

Due to its software base of the same name, Ethereum is considered a versatile currency, for example through the integration of so-called smart contracts into the payment process.

This enables transactions such as asset transfers to be automated.

Dogecoin is losing

Some investors therefore apparently switched money from Dogecoin to Ethereum, said analyst Timo Emden from Emden Research.

Dogecoin was started as a parody of Bitcoin, multi-billionaire and Tesla boss Elon Musk is considered a strong advocate.

At the weekend, however, the doge rate had slumped by almost 40 percent from around 70 to up to 42 US cents.

Musk had guided through the American TV show Saturday Night Live at the weekend and also addressed Dogecoin in a mostly humorous way.

Apparently that was not well received by the market.

The Bitcoin course, however, increased in value.

On Monday morning, a Bitcoin cost up to $ 59,600.

In mid-April, the cryptocurrency reached a record high of just under $ 65,000, which now seems within reach again.

Bitcoin's market relevance is still high, but its market share has fallen significantly in recent weeks.

hba / Reuters / dpa