The price of cryptocurrency Ethereum has stabilised on Wednesday, following two days of steep falls.
Ethereum is up 5% against the dollar to $201.17 at 9.17 a.m. BST in London (4.17 a.m. ET):
Ethereum fell around 25% against the dollar across Monday and Tuesday.
The pull-back follows a 5,000% rise in the price of Ethereum since the start of the year. eToro analyst Mati Greenspan told Business Insider on Tuesday that the decline was likely just a correction after such a rapid rise. Concerns over the viability of companies using Ethereum’s network to raise money also contributed, he said.
Ethereum is a little like bitcoin — an open-source database overlayed with a digital currency. Whereas bitcoin is made for spending, Ethereum’s token, Ether, simply powers its network. Ethereum’s network allows people to write “smart contracts” and people have been using it to raise money online through DIY crowdfundings called “Initial Coin Offerings.”
Bitcoin is also stable against the dollar on Wednesday morning. The digital currency is up 0.24% to $2,322.03 at 9.27 a.m. BST (4.27 a.m. ET):