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Ethereum cracks R40k, hits another all-time high

The second biggest crypto has doubled since the start of the year.
The latest price surge comes after the listing of a batch of exchange-traded funds on the Toronto Stock Exchange in Canada. Image: Akos Stiller, Bloomberg

Ethereum, the second biggest cryptocurrency by market cap after bitcoin, hit a new all-time high this week when it cracked R40 000.

Earlier in the month another milestone was reached – ether (ETH), the name of the Ethereum network’s currency, blew past the 1o ounce Krugerrand (currently worth about R26 200).

By way of historical comparison, bitcoin smashed through R40 000 in July 2017 before rallying to more than R300 000 before the end of that year.

Price-surge push

The latest push behind ether’s price surge comes after the listing of a batch of ETFs (exchange-traded funds) on the Toronto Stock Exchange, which now makes it possible for institutional and high-net-worth individuals to invest indirectly in funds such as the CI Galaxy Ethereum ETF (ETHX).

Many investment funds are prohibited from directly owning cryptocurrencies, but are allowed to invest in companies that hold cryptos like bitcoin and ETH.

The first ether ETF to be launched was the Grayscale Ethereum Trust, which tracks the ETH market price, less fees and expenses.

The fund enables investors to gain exposure to the price movement of ETH through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping Ethereum.

Another reason behind this week’s price surge is the overcoming of some technical obstacles to the expansion and smooth running of the Ethereum network in a series of upgrades called ETH 2.0.

Read: Why Ethereum has been on a tear

Ether has been gaining in strength against bitcoin since the start of 2021.

These two cryptocurrencies have entirely different use cases: bitcoin is seen as a store of value because of its hard cap of 21 million coins that will ever be minted, while the Ethereum network allows developers to build applications that can generate revenue in a variety of different ways. There are currently 115 million ETH in circulation, a figure hard-coded to increase by 12 million a year.

Will the rise continue?

AltCoinTrader CEO Richard da Sousa sees Ethereum at R50 000 in the near future.

“I’ve been predicting that Ethereum would be worth more than an ounce of gold for some time, and now it has happened. I don’t see it stopping here.”

Some analysts are cautious of the parabolic rise of cryptocurrencies, but others are not so sure, arguing that Ethereum remains undervalued and could hit $3 000 (around R42 740) in the next few months.

Some even see it at $10 000 (close to R142 500) in the next two years.

Prominent investor Raoul Pal sees a price potential of $20 000 for Ethereum, while Mark Cuban likens the current run in cryptos to the internet bubble. In January he tweeted that cryptocurrencies like ether, bitcoin and a few others will be analogous to those tech companies built during the dot.com era that survived the bubble and went on to thrive. Other cryptocurrencies may not be so lucky.

Ethereum-bitcoin price: Ethereum is gaining relative to bitcoin

Source: TradingView

Listen to Ciaran Ryan’s interview with Jason Carpenter of Etherbridge and JonJon Clark of Avo Labs:

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Snake oil by any other name

South Africa should launch the “Kruger coin”, and give every buyer a Kruger rand. At least you can see/feel and actually use it

And the gold has practical worth

You can buy gold and silver ETFs. Not sure why you want to risk physically storing a gold coin? Besides jewellery and some electronic component usage, most gold is simply locked away in a vault. It really does have limited use unlike steel. So not sure why it is valuable in the first place?

Tulips or the real deal? I’m too doff to know, don’t know how to value these things, therefore happy to miss out

They valued on hype, smoke and mirrors, easy! hahaah

Google “DeFI” and see why ETH is the real deal. BTC’s time is slowly running out while ETH based applications are becoming a parallel global financial system based on immutable contract and not the nation state where (corrupt) governments effectively own people and their assets. Ignore this at your own peril! But do try to time your entry into the market.
https://www.entrepreneur.com/article/368497

MOK, as I said, I’m the guru of zero but it does seem to me you’re swapping a red tulip for a yellow one. Happy to be proved wrong and will of course look at your link. Thanks for that.

Hey! Don’t insult tulips! Even the well-known economist and arch crypto skeptic, Nouriel Roubini, concedes that tulip bulbs have some real-world economic utility value. Especially with Women’s Day coming up…. Crypto, not so much.

Crypto is said to be the future of money.

But…..I want to know of ANY crypto supporter exist, that has placed his/her entire life savings into BTC, ETH, etc? (that includes cashing in your pension fund after past resignation, and convert it all into crypto for future growth). Also sell you house, then rent a place….as your home capital growth into crypto should exceed the rise of your rent increases.

Surely, you’ll beat the 5% p.a. returns from (Fiat) Asset Managers?

Yes, am aware it also goes down violently, but it seems its more of a UPward parth. If you placed your life savings into it some time ago, with current rise in crypto valuations, you could now retire, right?

Why is everyone just pussyfooting with a small % of their money into crypto (…am referring to serious crypto players), and not GO BIG? (or go home). Lack of trust?

I’ve bet the bank – 100% savings & 70% salary. Short term gain. Very big. Very quick. Retire.

I’ve got a couch in my house – pull in when you need to

This is what exactly what the poor sods who got retrenched from Iscor thought. They’d make a quick buck with Krion. Get in with their entire pension, make a quick buck. Twenty years later, some of the survivors, who didn’t die from broken hearts or suicide, are still living in Wendy Houses in somebody’s garden.

@DHawker – Good Investment. You wont regret.

I also thought that it was a Ponsy scheme but my wife knew better and with the help of her tech savvy cousin devised a strategy to invest in crypto.

1. Invest no more than 3% of your financial assets
2. Once it doubles take out the initial investment and leave the rest to grow.

So in 2017 she bought 4 Bits and 30 Ether for a little less than R180K. She cashed in the initial capital, bought a really nice used car, took us to a lifetime holiday at the Oyster Box and paid for school fees for four years.

She still has 0.96 Bitcoin left and 10 Ethers with a value at time of writing of R 1 183 893 (29 April 2021 @ 14:02)

If Wifey had held on to all the crypto, then today it would have been worth R 4 456 714 but she has no regrets (and neither do I, frankly)

I followed suit last year. I have already doubled my capital and sold some to do certain things (and paid the capital gains tax) but have stopped accumulating at current levels.

If you don’t dive in you will never get wet and catch the wave.

PS!! At the time that my wife bought in early 2017, I had acquired a living annuity for some R300K odd. If had invested all those funds in Crypto I would today have just over R9 million and retirement would be so much nicer with no need to still work.

End of comments.

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