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Ether Hits New All-Time High as Cryptos Whipsaw

All the tokens at the base layer of bitcoin technology known as Layer 1 networks have seen monumental growth.

Ether, which is currently the second largest cryptocurrency in the world, today set a third all-time high record in the last month.

Worth $4,634 at the start of Wednesday, the Ether token underpinning the Ethereum blockchain network rose above yesterday’s $4,600 record, a more than 10 percent gain in a week.

It is also looking increasingly likely that the cryptocurrency will hit the $5,000 mark for the first time since Ether launched in 2015 in the coming weeks.

The only cryptocurrency worth more, bitcoin, hit a record high of $67,016.5 on Oct. 20 at what is an 117% annual increase.

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Since the U.S. Federal Reserve announced a tapering of its asset purchases, several cryptocurrencies have been seeing skyrocketing growth — as experts told Reuters, all the tokens at the base layer of bitcoin technology known as Layer 1 networks have seen monumental growth.

“The correlation of crypto versus equities and risk-on sentiments is high,” Danny Chong, who is CEO of decentralized asset tracking platform Tranchess, told Reuters.

As banks increasingly become more accepting of cryptocurrency and gaming and media platforms rush to offer non-fungible tokens (NFTs), experts cryptocurrency — and Ether in particular — to see prolonged increases in value.

“Ethereum has been the clear winner of the Layer-1s for what we believe will be a substantial shift in a potentially prolonged market sentiment uplift,” Chong continued. “Ethereum will also continue to play a major role in the NFT and metaverse ecosystem buildout.”