Ethereum experiences significant growth as bitcoin spike continues

Ethereum, widely acknowledged as the second-largest digital currency, has continued to experience significant growth, hitting record highs amid a sustained stellar period for the coin. 

It’s a spike that has been complimented by the rapid rise in bitcoin, which has seemingly benefited from the elongated lockdowns being endured globally. 

Nonetheless, ethereum’s rise has been significantly larger than that of bitcoin over the same period, with both seemingly reaping the benefits of heightened investor interests as portfolios became more diversified. 

Furthermore, it is predicted by many that the rise could continue as the desire for a dwindling supply strengthens. 

Speaking to the Independent at the start of the month, Simon Peters, a cryptocurrency analyst at the online investment platform eToro stated: “Ethereum now finds itself in the spotlight after data showed withdrawals of ethereum from exchanges is once again accelerating. 

“Ethereum is increasingly being locked away in DeFi (Decentralised Finance) protocols, whilst investors are also moving ethereum to their own personal cold storage to hold for the long-term.

“It’s clear from the price that this diminishing supply is feeding through quickly to prices. With institutions expected to add further to their positions, we expect the price of ethereum to push higher from here.”

Over the past year, the price of ethereum has risen by 160 per cent, dwarfing the already substantial growth of bitcoin which spiked around 75 per cent. It comes as digital currency takes on an increasingly important role in global economies, having been thrust further into the mainstream as regions seek to combat the pandemic.