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Ethereum (CRYPTO: ETH) hit new records in November.
The world’s number 2 crypto, with a current market cap of US$540 billion (AU$760 billion), was trading for an all-time high of US$4,856 on 10 November, according to data from CoinMarketCap.
Depending on your time zone, Ethereum kicked off November trading for US$4,314 and finished the month at US$4,604. While that was down from the 10 November record, the token finished the month up 6.7%.
As at 30 November, Ethereum had gained 530% year-to-date, putting it well ahead of the 100% gain posted by Bitcoin (CRYPTO: BTC) in that same period.
What happened with Ethereum in November?
The Ethereum price, along with other leading cryptos, is getting a boost from increased institutional investor interest.
On 3 November, the Commonwealth Bank of Australia (ASX: CBA) revealed that it would become the first Australian bank to offer crypto services to its customers.
Via CommBank’s app, its customers will be able to buy, sell or hold Ether, Bitcoin, Bitcoin Cash (CRYPTO: BCH) and Litecoin (CRYPTO: LTC), among other top cryptos. CBA partnered with crypto exchange Gemini and blockchain analysis firm Chainalysis, to launch the new crypto service.
What else is helping drive the strong performance?
Ethereum’s strong performance in November, and indeed all calendar year, is also linked with its real-world use factors, primarily involving smart contracts.
As Darren Abrams, managing director of digital currency provider Aus Merchant Investments, told The Motley Fool:
Ethereum is a platform, upon which a multitude of decentralised applications are built. These decentralised applications or ‘dapps’ as they are often referred to, are part of a revolution in the computing space known as web 3.0… While Bitcoin is central to the Web 3.0 movement, it’s use case is limited. Ether, and other smart contract blockchains, have an almost infinite number of use cases.
While crypto investors have driven up Ether’s price this year, the token failed to live up to any safe haven status at the end of the month.
When news broke of the Omicron COVID variant on 26 November, the token plummeted alongside other risk assets. Ethereum fell from US$4,550 to US$3,960, losing 13% in a single hour. Bitcoin suffered a similar fate, falling 10% in that same hour.
