Cryptocurrencies

    Yes crypto is volatile. Ether way prices have been up year-to-date

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    Highlights
    • The token of Ethereum blockchain had been up more than sixfold in 2021.
    • Ether?s rise is rivalling that of market leader Bitcoin despite recent woes.
    • Bloomberg Galaxy Crypto Index up 262% YTD before recent crash.

    The cryptocurrency market is certainly volatile but Ether way prices are still trending higher in 2021.

    As at November 15, the Bloomberg Galaxy Crypto Index was up about 262%, while Ether was up more than sixfold this year, surging ahead of Bitcoin?s 127% rise as interest for digital assets continues to surge.

    However, hundreds of billions of dollars were wiped off cryptocurrencies in a market-wide crash at about 5am EST in the US on 16 November that soured the price of Bitcoin to below US $60,000, down from its all-time high of $69,000.

    While the value of other major cryptocurrencies, including Ethereum, which is the second-largest cryptocurrency, and Binance?s BNB, Cardan, Ripple?s XRP, and Solana have also come off.

    Reports this morning say the crypto market dived by more than US$200 billion overnight to about US$2.6 trillion, having neared the US$3 trillion threshold during its record-breaking rally last week.

    The ether price has continued to consolidate over the past few days, yet longer term, market pundits seem bullish it will continue to grow in value.

    With news that Ethereum is upgrading to a new platform called Eth2, which will have reduced fees and allow for more transactions per second, a deflationary currency was being created meaning its price had been rising.

    Coupled with increasing interest in digital art, and the emergence of Ether as a preferred payment mechanism for or Non-Fungible Tokens (NFTs), Ether could still be on track to surpass its November 10 all-time high of $US 4866 in time.

    It remains unclear what has caused the recent market crash.

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