Ethereum shoots past $3,000 in a major milestone, outperforming bitcoin’s year-to-date gains

SourceBusiness Insider
SectorFinancial Markets
CountryMiddle east

Cryptocurrency ether, native to the Ethereum blockchain, hit a new all-time high above $3,000 on Monday in a standout performance that has outpaced rival currency bitcoin’s gains so far this year.

The token rose 6% to trade around $3,142 as of 04:00 a.m. ET. That takes its year-to-date gains to more than 300%, far exceeding bitcoin’s 95% rise in 2021.

The digital asset’s popularity is embedded in its position as the blockchain of choice for many products and services that use DeFi – or decentralized finance – applications.

Transactions on the Ethereum blockchain hit a record high of 41.7 million in April.

DeFi refers to a class of new applications that aim to replace traditional financial products – like lending and borrowing, trading, saving, derivatives, and options – through the use of decentralized tech, rather than relying on a company or bank. These are typically built on the Ethereum blockchain.

Investors are betting that DeFi’s rise will spur Ethereum’s growth for two reasons, more...