In this news, we discuss the Smaller digital coins soar as bitcoin powers on towards record high.
LONDON (Reuters) – Digital currencies Ethereum and XRP soared on Monday, gaining momentum as bitcoin hit an all-time high.
Ethereum, the second-largest cryptocurrency by market cap after bitcoin, jumped 7% to its highest level since June 2018, pushing its gains to over 25% in just the past three days.
Traders said ethereum, which often operates in tandem with Bitcoin, was boosted by growing demand ahead of an upgrade to its blockchain network – slated for early December – that is expected to make it faster and more secure.
XRP, the third largest coin, climbed 15% to its highest level in two years, pushing gains to over 75% in the past three days. Traders said there was no immediate news catalyst for his jump on Monday.
The price of these so-called altcoins is closely related to bitcoin. Less liquid than their larger cousin, they tend to suffer from even greater volatility than the original cryptocurrency.
Bitcoin rose about 10% last week and last traded at $ 18,347, its all-time high of $ 19,666 in sight.
It has gained around 160% this year, fueled by demand for risky assets, a thirst for assets perceived to be inflation-resistant and expectations of more widespread use.
Reporting by Tom Wilson; Editing by Kirsten Donovan
Original © Thomson Reuters Corporation