Ether hit a new all-time high on Tuesday before falling sharply as some investors took profits in a booming market that was teeming with new entrants.
The day after the first $ 3,000 crossing, the ether token traded on the Ethereum blockchain reached $ 3,457.64 on the bitstamp exchange and then fell 6% to $ 3,244.
That still leaves him with a gain of around 340% this year. This growth is partly attributable to the flow of bitcoin investment, which has picked up steam with the arrival of high-profile investors, from Tesla automaker Elon Musk to Wall Street investor Stanley Druckenmiller.
It is also fueled by speculative insanity in the asset class. The Dogecoin cryptocurrency is up 9,000% this year, bringing the tokens issued to over $ 54 billion.
“What we are seeing right now is the definition of speculative excess.“Said Kyle Rodda, an analyst at IG Markets, who likened this situation to a tech bubble mania two decades ago.
“In the crypto space, money is thrown at anything“he added.
With a market cap of $ 376 billion, traders take Ether profits much more seriously and claim that it is catching up with Bitcoin’s growth and that updates to the Ethereum blockchain will make it more useful.
Compared to Bitcoin, the value of Ether has more than doubled this year and peaked more than two and a half years earlier on Tuesday. Bitcoin, which is up 90% this year, fell to $ 55,625, while the US dollar strengthened slightly elsewhere.