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GUANGZHOU, China – Ether, a digital coin linked to the Etherium blockchain, hit a record high of 45 3,456.57 a year as cryptocurrencies rallied 360 percent this year.
At 12:12 pm on Tuesday, some of the most traded names in Asia traded digital coins at 27 3,271.90, according to Coindusk data.
Interest in cryptocurrencies has grown over the past year and Bitcoin has consistently set new records. Several factors have been credited with its growth, including rising corporate interest and major companies buying Tesla digital coins.
Bitcoin is described as a “digital gold” or store of values as a hedge against geo-political turmoil or financial market volatility as well as inflation.
But etherium is different. It works more as a platform for developers to create apps. The name of the network or built-in blockchain technology is Ethereum, while Ether is the digital currency to power the platform.
The so-called smart contract is the main feature of Ethereum. These are contracts that can be executed automatically using code.
There is growing enthusiasm for the use of etherium in so-called decentralized finance, or DFI, applications. These are blockchain-based financial services, such as lending, which in principle can bypass banks and brokers.
Last month, the European Investment Bank said it had issued digital bonds for the first time on public blockchains using Ethereum.
The growing number of DFI de-applications built on Etherium and the growing institutional interest in technology may be behind the rapid price hike.
“Thousands of developers are creating applications that replicate traditional economic products in a decentralized way on top of Ethereum, and as more and more users enter to interact with these apps, they need ETH (Ether) to make any transaction,” Sergei Nazarov, co. Said the founder of the smart contract company Chanelink.
“Second, institutional interest in the public atherium blockchain seems to be growing, as stakeholders are playing with ways to take advantage of the public network.”
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