Ether surged to a record for the first time in almost four years, with the second-largest cryptocurrency benefiting from a renewal in demand after long being touted as a more adaptable alternative to the crypto market leader bitcoin.
The native token of the Ethereum blockchain rose as much as 15 per cent to US$4,866.73, topping the previous all-time high of US$4,866.40 reached in November 2021.
Ether has increased more than 40 per cent this year, outperforming bitcoin even as the original digital currency continues to set fresh highs after winning the endorsement of Donald Trump during last year’s US presidential election.
Both tokens rallied Friday after Federal Reserve chairman Jerome Powell opened the door to an interest-rate cut in September while speaking at the central bank’s Jackson Hole Symposium.
Bitcoin reached a record of just over US$124,500 on August 14. Lower interest rates often drive investors to higher returning riskier assets such as stocks and cryptocurrencies.
“For crypto markets, the reaction has been swift and positive,” said Katalin Tischhauser, head of research at Sygnum Bank. “In today’s liquidity-driven bull cycle, investors are quick to seize on dovish signals, and Powell’s comments offered exactly that.”
