Ethereum Hits an All-Time High on European Bond Sale Rumors

Ethereum, the platform on which the ether cryptocurrency transacts, continues to come of age, and that maturation is leading ether to new highs.

The second-largest cryptocurrency by market capitalization soared to another all-time high on Tuesday amid speculation that a European bond offering will commence on the Ethereum blockchain.

“Bloomberg reported on Tuesday, citing unnamed sources, that the EIB plans to issue a two-year 100-million euro digital bond, with the sale to be led by Goldman Sachs, Banco Santander, and Societe Generale, according to analysts,” reports Reuters.

See also: Ethereum’s Growth Is Simply Stunning

Ethereum Usage and Supply

Should that rumor materialize, it will speak directly to the Ethereum usage case, one that’s rapidly growing, even when measured against Bitcoin. And as has been seen with Bitcoin, as adoption rises, institutional investors will enter the market, effectively leading to reduced supply of Ether. That lower supply is often a catalyst for higher prices.

“Jean-Marc Stenger, chief executive of Société Générale’s enterprise blockchain unit Forge, told The Block last year that the bank has a ‘natural preference’ for public blockchains. Forge was set up to help banks issue securities using blockchain technologies,” reports Ryan Weeks for The Block.

“The amount of ethereum sitting on exchanges continues to drop lower and has been the lowest in the past year,” Danny Kim, head of revenue at SFOX, said. “With less supply on exchange available, there’s less likely a chance of a major sell-off.”

Adding to both the supply and usage cases, the Ether ETF (TSX: ETHR), CI Galaxy Ethereum ETF (TSX: ETHX), and the Purpose Ether ETF recently debuted in Canada. The Purpose product offers three share classes.

Late Tuesday, Ether’s market value was nearing $306 billion, or more than triple that of Binance Coin, the third-largest digital coin.

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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.