The world's second largest cryptocurrency ether (the token powering the Ethereum network) has almost doubled its price since the start of this year from around $750 to break above the $1,400 mark on Tuesday. This has significantly outpaced market leader bitcoin's rise from around $29,000 to $35,000, a 20% jump. Mint spoke to cryptocurrency industry professionals to understand what's driving the interest in Ethereum's cryptocurrency ether (ETH).
"Normally, when the bitcoin rally matures, altcoins such as ether catch up. This is because bitcoin investors start to diversify their holdings into other cryptocurrencies," said Nischal Shetty, CEO, WazirX, India’s largest cryptocurrency exchange. "Ripple—the third largest cryptocurrency—has seen a collapse due to a US SEC lawsuit, and hence ripple investors are moving to Ethereum. Also, the past year has seen the growth of decentralized exchanges and investors transacting through these exchanges pay transaction fees in ether," he added.
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