- Ethereum tumbled 7% on Wednesday after hitting a new all-time high of over $1,430.
- Directly tied to its explosive growth is the rise of projects built on Decentralized Finance, or DeFi.
- Ethereum users receive over 4% in annual interest, while traditional banks offer less than 0.5%.
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Ethereum dropped 8% on Wednesday after shooting past $1,430 a day earlier, hitting a new all-time high for the cryptocurrency powering the world’s largest smart contract platform.
Its price fell to around $1,265 as of 1150 GMT, retracing the previous day’s record high.
Ether, the native cryptocurrency of Ethereum’s blockchain network, has soared 33% year-to-date to reach its latest peak, only a couple of weeks after its crypto cousin Bitcoin reached a new high near $42,000.
Ethereum’s gain clearly shows it has outperformed Bitcoin’s 26% rally so far this year in their respective US dollar pairs. Its positive momentum indicates how projects built on decentralized finance, more commonly known as DeFi, are creating a more scalable infrastructure for smart contracts rather than relying on brokerages, exchanges, or banks.
The cryptocurrency has always been the lesser known rival to Bitcoin for a mainstream audience, according to Samantha Yap Founder & CEO at YAP Global. But an increased