$650 Breached, ETH up 25% in 24 Hours
The second largest cryptocurrency (by market capitalization), Ethereum (ETH), was trading at $669.18 today, up 25% in 24 hours following an announcement by UBS. The Swiss-based money manager is leading a data quality control project on Ethereum’s blockchain. Barclays, Credit Suisse, KBC, Swiss stock exchange SIX, and Thomson Reuters are the other financial institutions involved in the pilot project.
European Bank Trusts its Blockchain
The project is designed to help these financial institutions comply with new European Union trade data standards, the Markets in Financial Instruments Directive (MIFID) II, which will be in effect in 2018. ‘It is a tool that we are using to improve the quality of our reference data that will be used for regulatory reporting for Mifid II…….we are putting our trust in the blockchain,’ said Peter Stephens, head of blockchain innovation at UBS.
Rising Market Dominance
Ethereum’s market cap now stands at about $65 billion, dominating 12.9% of the cryptocurrency market as of December 13th. On January 1st this year, Ethereum commanded just 3.96% of the market. Ethereum, which began selling at $0.30 per token in mid-2014, is now trading at a price of 2000% higher. Over the past three months alone, Ether’s price has doubled from about $300 in mid-October to over $600 now (chart above).
The SEC’s warnings and notes of caution towards cryptocurrencies, urging investors to exercise “extreme caution”, have certainly not been able to deter investors and market makers from investing heavily.