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| Ethereum reaches a record high |
With Bitcoin's dominance in the cryptocurrency market diminishing, Ethereum reached an all-time high on Thursday.
In terms of market capitalization, the second largest digital currency in the world set a new record of $ 2,800 on Thursday morning.
Calculated by market cap, Bitcoin is the largest digital currency in the world with a transaction price of just under $ 54,471.
Earlier, the European Investment Bank announced on Wednesday that it had released the first digital bond on the Ethereum blockchain (the major digital currency network).
This sparked speculation that the currency is gaining momentum among major financial institutions, with most of the major cryptocurrencies trading on Thursday, backed by Ethereum.
Bitcoin is down nearly 16% from its all-time high of $ 65,000 earlier this month.
Due to increased interest from institutional investors and corporate buyers such as Tesla, the currency is up nearly 90% this year.
Meanwhile, some investors have warned of a bubble in the cryptocurrency market, and Dogecoin has been backed by tweets from celebrities like Elon Musk and Mark Cuban.
Several other digital currencies have also increased this year, reducing Bitcoin's dominance in the cryptocurrency market to below 50% last week for the first time since August 2018.
Bitcoin's market share for the first time fell below this level in 2017, when the sharp fall in the price of the cryptocurrency was formerly known as Crypto Winter.
However, bitcoin bulls believe the situation is different this time, as the rally is driven by institutional demand rather than retail investors.
Cryptocurrency skeptics say Bitcoin and other digital currencies are speculative bubbles.
Ethereum may be directly behind Bitcoin, but there are some big differences between the two currencies. For example, Ethereum has several developers creating apps on its network.
The general trend in the so-called decentralized application area is NFTs or non-exchangeable tokens, which are digital assets that are supposed to represent the possession of rare virtual objects. Many non-exchangeable tokens are based on Ethereum.
Ethereum is currently undergoing a major upgrade away from Bitcoin. In theory, this could shorten the transaction time and reduce the energy consumption of transaction processing.
With the network modernization, Ethereum in particular is proving its use cases, and given the constant emergence of developers, it's no wonder it has become so attractive to investors.