Ether, the digital token of the Ethereum blockchain, rose nearly 7% over the last 24 hours to $4,141.99 by 3:40 a.m.
The entire crypto market is currently worth around $2.5 trillion, according to CoinMarketCap, on the back of growing interest in the space.
Mainstream investors and some corporate buyers like Tesla flocked to bitcoin earlier this year, viewing the digital coin as a potential inflation hedge as central banks around the globe print money to relieve coronavirus-battered economies.
Ethereum is also benefiting from the rise of NFTs, or non-fungible tokens, digital assets designed to represent ownership of unique virtual items like art and sports memorabilia.
Ethereum is currently undergoing an ambitious upgrade that will, in theory, allow for faster transaction times and reduce the amount of power required to process transactions.