On Wednesday, the second leading crypto by market capitalization recorded a new high amid reports about the European Investment Bank (EIB's) plans of coming up with a digital bond sale on the ethereum blockchain network.
Ether or ethereum is the digital token that enables transactions on the ethereum blockchain.
On Tuesday, Bloomberg said referring to unnamed sources that the EIB is considering to issue a 2-year 100 million euro digital bond, with the sale to be led by Goldman Sachs, Banco Santander, and Societe Generale, according to analysts.
Today, ether hit a high price of $2713.95 per coin after a previous day's rally of 5 percent.Danny Kim, head of revenue at SFOX, a full-service crypto broker, said reports on an EIB digital bond issuance has "triggered a bullish institutional use case for ethereum".
Another reason responsible for the shoring up of price of the digital token is the decline in the supply of ethereum in the market. And this may likely trigger a sell-off in the currency.
Plus at the same time, there has been seen an increase in demand for ether as investors use these digital tokens to buy virtual art or land as non-fungible tokens on platforms including SuperRare and Decentraland.