Ether Rally Continues, For Now

 Ether (ETHUSD), the parent digital currency of the Ethereum ecosystem, is approaching a milestone of 2,000 as more institutional buyers expand their positions in recent weeks. An ether is currently the equivalent of 91,962.09, an increase of 22 times over a year ago.

"We believe that investors want to be diversified and are becoming more comfortable with the basic principles of Ethereum," James Butterfill, an investment strategist in Coin Shears, wrote in a February 8 research note. The asset manager noted that overall fund flows were "extraordinarily focused" on Ethereum, accounting for 80% of the 5 245 million allocated to Ethereum.

As of February 18, Grayscale Investment Holdings, the world's largest crypto asset manager, now owns 3.16 million ethers, and according to data compiled by Beth, Ether's deposits in its portfolio over the past seven days Shows the biggest change. the work

The involvement of institutional buyers, companies such as PayPal Holdings, Inc. (PYPL), and the appreciation from individual investors such as Mark Cuban have helped protect the skies. Cuba has said that "ETH has an advantage as a value store on the bitcoin," adding in an interview with the Defense Podcast that it is not buying more ether, the bitcoin (BTCUSD). Is.

This means, because Ethereum is more than just a cryptocurrency in terms of design, allowing so-called "smart deals" on blockchain. "Thanks to Ethereum, a blockchain can be more than just a digital currency," Jeff Roberts writes in his book Kings of Crypto: One Startup Quest to take cryptocurrency out of Silicon Valley and beyond Onto Wall Street. "Now it was also a stop shop where people could sign any agreement on investment deals, from games to data warehouses."

In that sense, Roberts compares Ethereum to ecosystems like Apple, Inc. (AAPL). "It serves as a platform for Apple developers to create applications for its iOS operating system," he wrote. "And unlike Bitcoin, Ethereum offers an easy-to-learn programming language for anyone who wants to create security name applications."

Like any cryptocurrency, Ethereum's exposure is not without hereditary risks, with some analysts pointing out that the treatment of big traders on Hobby, Binance and OKEX has led to a "lack of appetite for long positions". Can suggest However, other observers predict that the cryptocurrency will cost 2,700. Ether is still a relatively new digital currency, and it may take time to develop its promise and application in various industries.

"Smart deals on blockchain are real and reminiscent of the early days on the Internet when people realized that the network had an impact there," Cuba noted, noting that 25 years in the early stages of this development Have passed "We are right on that point." Right now, where smart deals on blockchain allow people to buy anything digital and turn it into a product and sell it. "

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