Ether reaches a new high of $4,600, while Bitcoin remains in the red
Ether, the world's second-largest cryptocurrency, surpassed its previous high on Wednesday, catching up to bitcoin's rally and riding on news of increased blockchain adoption.
The Ether token, which powers the Ethereum blockchain network, climbed to $4,643, surpassing the previous day's high of $4,600 and extending the week's gains to more than 10%.
Other tokens on the base layer of blockchain networks, known as Layer 1 networks, have gained traction in the days since Bitcoin, the world's largest cryptocurrency, hit a record high of $67,016.5 on October 20.
Bitcoin (BTC) was trading at $63,078 and has increased by 117 percent this year, while ether has increased by six-fold.
"Since the market reversal at the end of September, ether's strength has been moving in stride with BTC and other majors," said Ryan Rabaglia, managing director and global head of trading at digital asset platform OSL.
"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. Ethereum will also continue to play a major role in the NFT and metaverse ecosystem build out," he said.
The steady stream of news on cryptocurrency adoption by banks, growth of non-fungible tokens on virtual gaming platforms, launch Bitcoin futures-based US ETFs and a need among investors for diversification in an uncertain interest rate environment have pushed several blockchain tokens, including Bitcoin and Ether, higher since October.
Smaller tokens too have seen rising interest after Facebook rebranded itself into Meta to focus on building the "metaverse", a shared virtual environment.
Australia's largest bank, Commonwealth Bank of Australia, said on Wednesday it will become the country's first to offer retail clients crypto services.