Ether, the world’s second-largest cryptocurrency, hit a new high on Wednesday. It caught up to bitcoin’s rise and riding speculations of increased blockchain adoption.
The ether token powers the ethereum blockchain network. It reached $4,643 in Asian hours. It surpassed the previous day’s high of $4,600 and extending the week’s gains to more than 10%.
Other tokens on the primary layer of blockchain networks, known as Layer 1 networks, have gained traction in the days after bitcoin, the world’s largest cryptocurrency, reached a record high of $67,016.5 on Oct. 20. Bitcoin is currently trading about $63,078. It saw an increase of over 117 percent this year, while ether saw a sixfold increase.
Ethereum has emerged as the clear Layer-1 winner. Hence, we expect it will be a significant shift in a potentially extended market sentiment upswing. Ethereum will also continue to be critical to the growth of the NFT and metaverse ecosystems. Several blockchain tokens, including bitcoin and ether, have risen. Several factors are causing this rise. These include a steady stream of news about cryptocurrency adoption by banks, the growth of non-fungible tickets on virtual gaming platforms, and investor demand for diversification in an uncertain interest rate environment.
Smaller tokens have also gained popularity after Facebook Inc rebranded as Meta to develop the metaverse, a shared virtual environment.
Moreover, Commonwealth Bank of Australia, Australia’s largest bank, announced that it would be its first to offer cryptocurrency services to retail customers.
Hence, assets under management in digital investment products increased 45.5 percent in October to a new high of $74.7 billion, according to digital asset researcher CryptoCompare. Total AUM for bitcoin-based products surged 52.2 percent to $55.2 billion. Furthermore, AUM for ethereum-based funds increased 30 percent to $15.9 billion, setting new highs in both categories.
Australia’s CBA offers crypto trading
Commonwealth Bank of Australia will become the country’s first main-street bank to provide a platform for retail clients to trade cryptocurrencies, breaking industry ranks as it seeks to compete with rival fintech firms’ products.
The country’s largest lender announced a collaboration with New York-based exchange Gemini Trust Company LLC to provide a “crypto exchange and custody service” via a new feature in its mobile banking app, utilized by approximately 6.4 million people. Some prominent banks in the United States and Europe provide institutional clients with cryptocurrency trading services. However, others, like Saxo Bank, provide access to cryptocurrency through ETFs or other crypto-related products.
DBS Group of Singapore provides wealthy clients with a platform for cryptocurrency trading. Beginning with a pilot program this year, the bank announced it would allow customers to purchase, sell, and store ten cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
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