Ethereum is now up over 5,000% since January 2017

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There’s no doubt that Ethereum is the most popular cryptocurrency of the moment and the fact that this Monday the prices surged to record levels doesn’t come as a surprise.

According to CNBC, it was trading at $407.10 early in the morning, as stated by industry website Coinmarketcap. This is a record level, marking an over 5000 percent rise, since the beginning of the year, when Ethereum was trading at just $7.98.

This value comes after Bitcoin, another important player on the cryptocurrency market, traded for more than $3000 for the first time, this Sunday.

Alternative cryptocurrencies are on the rise right now

“The strong interest in bitcoin does boost investors’ appetite for alternative cryptocurrencies where superior gains are also being seen,” said Pavel Matveev, co-founder of personal finance app Wirex.

“There is some correlation between cryptocurrencies in this sense but there is also fundamental demand for Ethereum in its own right. Ethereum and bitcoin aren’t directly competing as they serve different needs,” he added.

This is a relatively new cryptocurrency, running on the ethereum blockchain, the technology underprining the digital coin. However, it’s used as shorthand for the digital currency pretty often lately. As for its main purpose, it was initially designed for supporting smart contract applications, programs able to automatically execute the terms of a contract when specific conditions are met.

Ethereum could reach even more impressive trading rates in the next months

According to analysts, the value is expected to grow even higher, to $600 by the end of the year, but if the same impressive growth rate is maintained, it could even reach $1000 ore more, by December 31, 2017. As for the upcoming weeks, the next leg we could see may be $476.

Despite being new, Ether managed to reach an impressive level, being the second-largest cryptocurrency, in terms of market capitalization, with a total value of $36 billion, placing it below Bitcoin, which is currently valuated at $48.91 billion.

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