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  • Ethereum breaks above $1,300 to hit a fresh all-time high on Wednesday.
  • The second largest cryptocurrency by market capitalisation is defying its major rivals, which have slumped during morning trade.
  • Both bitcoin and Ripple’s XRP are significantly lower on the day.

LONDON — Ethereum, the second biggest cryptocurrency in the markets, broke to a fresh all-time high overnight on Wednesday as investors continued to pour money into it.

Just after midnight UK time, ethereum’s price broke as high as $1,375, having only surpassed $1,000 during trade over the weekend. Ethereum has since pared some of its gains, but remains in positive territory, up more than 3% as of around 7.30 a.m. GMT (2.30 a.m. ET), as the chart below illustrates:

Ethereum’s recent rally first started after a fourth-quarter report on the performance of the currency — which is a decentralized network for people to run contracts on — showed that transaction volumes on its network doubled, according to a blog post, “surpassing 10 transactions per second for days at a time.”

Ethereum’s gains on the day are in contrast with drops for the two other largest cryptocurrencies by market capitalisation, bitcoin and Ripple’s XRP, both of which have seen falls on Wednesday. At 7.30 a.m. GMT, bitcoin is lower by around 1.5% to trade at $14,180, having briefly fallen below $14,000 earlier in trading.

XRP is taking even more of a hammering, falling as much as 14% against the dollar, as the chart below illustrates:

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One possible reason for these falls is the announcement overnight that the Australian Tax Office (ATO) is establishing a taskforce to monitor cryptocurrency transactions.

According to our colleagues at Business Insider Australia, the taskforce “aims to ensure cryptocurrency investors are paying the correct amount of Read More Here