Cryptocurrencies Ethereum and XRP surged on Monday as Bitcoin edged towards its record high.

As the second largest digital currency by market capitalisation after Bitcoin, Ethereum soared 7% to its highest level since June 2018, taking the crypto’s gains to over 25% over the past three days.

According to traders, Ethereum has received a boost from burgeoning demand ahead of an upgrade to its blockchain network, Reuters reports, which is widely predicted to make it faster and more secure.

The upgrade is due to take effect at the beginning of next month, and may mean “more people and businesses can use Ethereum for economic activity, rather than just financial trading,” said Ross Middleton, co-founder of cryptocurrency exchange DeversiFi.

Like Bitcoin, Ethereum is mostly popular among speculative traders, gaining little mainstream usage.
The third largest cryptocurrency by market cap, XRP, rose 22% to its highest level in more than two years. Gains have reached around 75% over the past three days.
The price of these altcoins is closely linked to Bitcoin, although they usually suffer from increased volatility more than the original digital currency.
Furthermore, smaller coins have rallied on the back of Bitcoin’s recent bull run, with a 10% rise over the last week.
Bitcoin was last up 1% at $18,603, not too far away from its record high of $19,666 hit in December 2017. So far in 2020, Bitcoin has soared around 160%.
According to Joseph Edwards, head of research at crypto brokerage Enigma Securities: “Bitcoin skyrocketed, profits were taken, profits went back into altcoins.”
Bitcoin’s gains have been driven by increasing demand for risk-on assets due to the unprecedented stimulus measures to tackle the impact of the coronavirus crisis.