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As cryptocurrencies surge, Ethereum hits a new all-time high while bitcoin approaches a new high.

• Ethereum, the world's second-largest digital currency, jumped more than 4% in only 24 hours on Monday, reaching a new all-time high above $4,700.
• Bitcoin rose 7% to $66,250, edging closer to the record high of $66,900 recorded in late October.
• It comes at a time when there is a lot of buzz around DeFi, or decentralised finance.

Cryptocurrencies are starting the week on a positive note.

Ethereum, the world's second-largest digital currency, jumped more than 4% in only 24 hours on Monday, reaching a new all-time high above $4,700. According to Coin Metrics statistics, the token was last trading at $4,740.

Bitcoin, meanwhile, rose 7% to $66,250, edging closer to a record high of $66,900 established in late October.

The reason for the relocation was unclear. Cryptocurrencies are notorious for their high volatility, with price fluctuations of up to 20% higher or lower being very usual.

DeFi

It comes as interest in DeFi, or decentralised finance, grows in the crypto market, a new movement that aims to construct financial applications like lending and trading on the blockchain.

Ethereum is a crucial component of DeFi. The Ethereum network is used by some of the most popular DeFi applications, such as the decentralised exchange Uniswap and the lending site Aave.

Nonetheless, officials have recently been interested in DeFi, and experts have warned that a crackdown is on the way.

Ethereum also serves as the foundation for a number of non-fungible tokens, or NFTs. NFTs are similar to digital receipts in that they serve as a record of ownership for valuable objects such as online art.

This year has witnessed a surge in activity, with one token selling for a record $69 million at Christie's.

Despite this, ethereum faces stiff competition. Rival tokens like as solana and cardano have seen significant price increases this year.

Ethereum 2.0

Ethereum is undergoing a big update that investors hope will make the network quicker and greener.Bitcoin and other cryptocurrencies have been chastised for increasing their energy use.

Late last month, an upgrade known as Altair became available, marking the latest phase in Ethereum's redesign.

Following the listing of the first U.S. bitcoin futures exchange-traded fund, bitcoin hit a new all-time high of about $67,000 last month.

The move was hailed by crypto bulls as another another indicator of Wall Street's growing embrace of digital assets.

Following big increases in bitcoin's price, alternative digital currencies often soar as investors seek higher profits elsewhere in the market.