Since December last year, the cost of Ether (ETH) has skyrocketed by about 530%, while Bitcoin has grown by about 200% over the same period.
Even though BTC still exceeds ETH in terms of capitalization, the latter turned out to be the most effective instrument.
Ether is based on the blockchain, which acts as a platform for most DeFi protocols. The so-called metaverse is also deployed on Ethereum, which creates conditions for long-term growth in the value of ETH, the underlying asset of the network, said co-founder of FRNT Financial Inc. Stefan Wellett.
According to him, Bitcoin is viewed primarily as a tool for hedging inflation risks, while ETH acts as a foundation for cryptocurrency companies.
Many institutional investors see ether as a promising cryptocurrency. The increased interest in it is indicated by the data of the CoinShares company, which recorded an increase in capital investments in Ethereum funds.
Just last week, institutions invested approximately $ 23 million in products focused on the largest altcoin.
The ETH rate rose to $ 4674 the cryptocurrency capitalization reached $546.611 billion on the night of December 1.