Ethereum (ETH-USD) set a new record high for yet another consecutive day on Thursday, riding at least two macro themes entrenching themselves within the cryptocurrency sector.
The second-largest cryptocurrency traded above $4600 before paring those gains, but has logged record highs over the past week — thanks in part to the rising popularity of non-fungible tokens (NFT) and Decentralized Finance (DeFi) projects. Over the last year, ether has outperformed bitcoin, gaining more than 1025%.
Those factors have spurred short-term demand for paying transaction costs in the digital coin, plus growing speculation on its value for the so-called metaverse. The latter development is approaching warp speed, now that Facebook (FB) has rebranded itself in an aggressive push to lean into the next phase of digital’s development.
Solana (SOL1-USD), another cryptocurrency similar to ethereum, also leapt to new all-time highs Wednesday with an almost 31% gain in the last week. Both moves follow an investment frenzy for NFTs or non-fungible tokens.
Ether’s blockchain: The gas that propels crypto transactions
Up 9% this week alone, ETH might have further to go in the near term, according to Fundstrat Global Investment Advisors.
“Ethereum should still rally higher up to $4,951 with little to no resistance,’ wrote Fundstrat Global Investment Advisors on Wednesday. Ether’s Relative Strength Index (RSI), the technical gauge of buying momentum, shows the price has managed to churn higher without becoming noticeably overbought.
Everyone’s hearing about Ethereum in ways that have never happened before because of NFT’s. People get excited by NFTs,”David Hoffman, ‘Bankless’ podcast host
Ether’s underlying blockchain, Ethereum, is the world’s most established decentralized blockchain protocol (or “Layer-1” in technical terms) for smart contracts in the world.
While it doesn’t receive the same investor demand as Bitcoin (BTC-USD), ether often serves as the “next stop…
