Ether was trading above $4,000 on Friday, on a path to potentially return to its all-time high of $4,647 in May, while bitcoin has risen above $51,000.
Solana, the seventh largest cryptocurrency by market capitalization, reached its all-time high of $150.6.
The price rallies of ether and Solana, which are both smart-contract blockchains that allow developers to build applications on the networks, were partly driven by the explosive growth of decentralized finance, or DeFi, protocols and nonfungible tokens, according to several analysts.
exchange balances are falling again, which is usually viewed as a bullish sign, Matthew Blom, global head of sales and trading at crypto exchange EQONEX, wrote in a Thursday note.
surge could also be attributed to Ethereum’s recent “London hard fork” upgrade, which includes Ethereum Improvement Proposal (EIP) 1559, analysts say. The changes aim to alter the way transaction fees, or “gas fees,” are calculated, and have been reducing ether’s supply.
“The recent market rebound has also fuelled speculations of an upswing in ether tokens, with increased trading volumes fuelling the price action,” Pavel Shkitin, CEO of cryptocurrency exchange Nominex wrote in an email to MarketWatch recently. “As a result, we will most likely have a speculative rise in the price of ether.”