Ethereum has stablished a new record when it passed the $700 barrier. There are two main reasons for this price surge related to two different things. The first reason is related to an announcement made by UBS and a platform that they want to launch along with other enterprises. The second reason is because of the bullish market in which we have been in the last days.
UBS Ethereum-Based Blockchain Project
The Swiss Financial Service company, UBS, has announced that it would lead an Ethereum-based blockchain platform alongside other firms. Among these enterprises we can find Barclays, Credit Suisse, KBC, Swiss stock exchange SIX and Thomson Reuters. According to CNBC, the network would be used to help participants in the project to comply with the European Union’s new regulations.
Peter Stephens, head of blockchain at UBS commented to Reuters on the matter: “The project is getting market participants to collaborate using blockchain to improve regulatory reporting. The point is to allow us to come to a consensus for this non-competitive reference data which is essential for trade reporting purposes.”
Bullish Cryptocurrency market
During the last days we have experienced a bullish market that increased the prices of different cryptocurrencies and is pushing the total market capitalization to levels never seen before.
According to coinmarketcap, at the moment of writing this article, Ether is being traded at $718 dollars, growing more than 16 percent in the last 24 hours and with a market capitalization of $69.21 billion dollars.
This growing market can have an explanation. During the past weeks, Bitcoin was in the news because the CBOE and the CME were going to launch Bitcoin Futures. People that never heard of Bitcoin had also been interested in it due to its price surge ten days ago.
Several individuals opened accounts in Coinbase and started to trade there for Bitcoin. But Coinbase offers also Ethereum and Litecoin as cryptocurrency alternatives. This situation created a bull run in Ethereum and Litecoin.
At the moment, the cryptocurrency market has $507 billion dollars’ market capitalization.