Ethereum, a cryptocurrency, has reached a new high of $4,400

On the display of a cryptocurrency ATM of blockchain payment service provider Bity at the House of Satochi bitcoin and blockchain shop in Zurich, Switzerland on March 4, 2021, the exchange rates and logos of Bitcoin (BTH), Ether (ETH), Litecoin (LTC), and Monero (XMR) can be seen. Arnd Wiegmann for Reuters

(Reuters) – HONG KONG, Oct 29 – On Friday, Ether, the world’s second-largest cryptocurrency, set a new high, just over a week after its larger rival bitcoin did the same.

Ether is up more than 60% since its late September trough as cryptocurrency markets have recovered dramatically in recent weeks.

The ethereum blockchain network’s native token soared as much as 2.6 percent to $4,400 in Asian hours, breaking beyond the previous high of $4,380 established on May 12.

“It wouldn’t surprise me if we blew through in European and US trade,” said Chris Weston, research director at Pepperstone in Melbourne. “At the moment, this is a momentum beast, and it appears to be bloody strong.”

Shiba inu coins are worth a fraction of a penny and are known as “shib” by a growing army of retail investors. It’s “a decentralised meme token that has developed into a dynamic ecosystem,” according to its website.

The promise of quick riches is driving the gains, according to analysts, and was a major driver in the broader explosion of cryptocurrencies during the COVID-19 pandemic. Others claimed that the coin was being traded in huge quantities by crypto-specialist market makers.

“People are always looking for the ‘next Bitcoin,'” said Mati Greenspan, the founder of Quantum Economics, a crypto analysis and advising organisation. “The desire to become wealthy quickly is a strong incentive.”

With talk that the meme-based cryptocurrency could be traded on a major retail exchange, increases were also fueled by expectations of wider acceptance.

“On anticipation that it will compete or replace the concept of dogecoin and its utility, Shiba has shown remarkable increases,” said Chris Kline, co-founder of Bitcoin IRA.

While the shiba inu has brought in new investors, its absence of a meaningful use case makes its exorbitant valuation difficult to justify, according to Jack McDonald, CEO of PolySign, a digital asset custody solutions provider for institutional investors.

“While shiba inus have recently brought individuals good fortunes, I don’t want to be holding this when the music stops,” he explained.

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