Second-biggest cryptocurrency Ethereum breaks $4,000 to hit record high

Cryptocurrency ethereum broke $4,000 for the first time on Monday, climbing to a new peak for a third day in a row on bets it may find new uses, although some analysts said it was overvalued at current levels.

Ethereum, the second-largest coin by market capitalisation, jumped more than 6% to just below $4,175, and was last up around 2%.

It has soared this year, fuelled by expectations of wider use, based in part on its role in decentralised finance – “DeFi” – platforms that facilitate crypto-denominated lending outside traditional banking.

An upcoming technical change to its software seen as reducing its supply has also provided a boost, while new institutional investors in the crypto sector have warmed to it amid a tepid quarter so far for bitcoin.