2/2 © Reuters. A representation of the virtual currency Ethereum is seen in front of a stock chart in this illustration 2/2
By Kevin Buckland, Stephen Culp and Gertrude Chavez-Dreyfuss NEW YORK / TOKYO (Reuters) -, the world’s second-largest cryptocurrency in terms of market capitalization, hit a new peak on Wednesday, with participants citing media reports on the European Investment Bank’s plans to launch a sale of “digital bonds” on the ethereum blockchain network. Ether is the digital currency or token that facilitates transactions on the ethereum blockchain. In the world of cryptocurrencies, the terms ether and ethereum have become interchangeable. Bloomberg reported Tuesday, citing unidentified sources, that the EIB plans to issue a two-year € 100 million digital bond, with the sale by Goldman Sachs (NYSE :), Banco Santander (MC 🙂 and Societe Generale. (OTC :), according to analysts. Ether hit an all-time high of $ 2,713.95 on Wednesday, following a rally of more than 5% the day before. The last time it was up 1.4% to $ 2,706.39. Danny Kim, head of revenue at SFOX, a full-service crypto broker, said that reports on an EIB digital bond issue “have triggered a bullish institutional use case for ethereum.” He also cited the decrease in the supply of ethereum in the market, which has increased its price. “The amount of ethereum on exchanges continues to fall further and has been the lowest in the past year,” Kim said. “With less supply available on the stock market, there is less chance of a sell-off.” Demand for ether has also increased as investors use the tokens to buy virtual art or land, in the form of non-fungible tokens (NFTs), on platforms such as SuperRare and Decentraland. On Monday, digital currencies got a boost from reports that JPMorgan Chase (NYSE 🙂 plans to offer a managed bitcoin fund, the latest indication that what many see as a speculative investment is gaining institutional legitimacy. , the world’s largest crypto asset with over $ 1 trillion in market capitalization, regained the $ 50,000 mark this week. Bitcoin, last rose 1% to $ 55,630.82, but well below its record of $ 64,895.22 set on April 14. On March 1, Goldman Sachs restarted its cryptocurrency trading desk, just weeks after Tesla (NASDAQ 🙂 Inc announced that it had bought $ 1.5 billion worth of bitcoin, sparking a rally. But cryptocurrencies encountered some resistance after US President Joe Biden revealed plans to increase taxes on capital gains, a move that could curb investment in digital assets.