The cryptocurrency "Ether" has surpassed other cryptocurrencies over the past week, ahead of an update that will help its network become faster and more energy-efficient. The second-largest cryptocurrency in the world has risen by about 10% since October 19, while "Bitcoin" has dropped roughly 3% in morning trading today in New York. "Ether" has also outperformed alternative digital tokens such as Binance Coin and Cardano during this period.
These gains come ahead of the scheduled update tomorrow, Wednesday, which is expected to make the Ethereum network faster and more scalable, potentially leading to lower user fees. Ether has risen by about 1,000% in the past twelve months, outpacing Bitcoin's jump of 380%, due in part to the network's popularity among applications like decentralized finance and non-fungible tokens.
Like other cryptocurrencies, "Ether" is subject to significant volatility, having lost more than half its value earlier this year before recovering, trading around $4,200 today, Tuesday. Bullish speculators are also using the options market in preparation for a possible announcement of an Ether exchange-traded fund (ETF), as noted by cryptocurrency liquidity provider B2C2 in a recent report.
Mike McGlone, a strategist at Bloomberg Intelligence, stated in a report yesterday: "The open interest value on dollar-denominated Ethereum futures has risen to the level Bitcoin was at in July, indicating that an ETF tracking the second-largest cryptocurrency is only a matter of time... The Securities and Exchange Commission has prevented ETF providers from launching products based on Ethereum, but trading of futures, along with demand and competition, indicates that its occurrence is inevitable."
