ether of ethereum Ethereum$3,374.36 On Tuesday, it soared to its strongest price since mid-November, sending the cryptocurrency market as high as Bitcoin. BTC$93,913.61 It exceeded $94,000.
The second-largest cryptocurrency rose just below $3,400, up 8.4% in the past 24 hours. These gains significantly outpaced Bitcoin’s 4.5% rise and the market-wide benchmark CoinDesk 20 Index’s 6% rise.
The rally also pushed the ETH/BTC ratio, a closely watched indicator of ether’s relative performance against Bitcoin, to its strongest level since late October, signaling a rotation away from major cryptocurrencies to ETH.
Joel Krueger, market strategist at LMAX, said in a note on Tuesday that Ether’s rise and relative strength against BTC is driven by the impending addition of staking to the fund, “improved regulatory expectations and renewed optimism regarding ETF-related inflows.”
Asset management giant BlackRock, the publisher of the most popular Spot ETH ETF, filed on Monday to introduce the iShares Ethereum Staking Trust, which offers investors the yield of staking.
“This development has revived optimism for capital inflows, particularly in ETH, and the prospects for high-yield crypto products to reach a broader investor base,” Krueger wrote. “While the regulatory timeline remains uncertain, this headline provides further confirmation of the relative stability of ETH versus Bitcoin.”
ETH could also benefit from regulatory efforts that pave the way for real-world asset tokenization, a fast-growing field focused on bringing financial instruments such as bonds, funds, and real estate onto smart contract platforms such as Ethereum.
U.S. Securities and Exchange Commission Chairman Paul Atkins has touted tokenization as an important innovation for capital markets, saying in an interview with Fox Business last week that it has the potential to transform the financial system and reduce payments risks and trade disparities.
