The digital currency Ethereum is set to open its $2 billion market by the end of the year.
The digital currency’s market capitalisation reached $1.4 billion at the close of trading on Thursday, surpassing the $1 billion mark.
Ethereum has risen more than 40% in the past week, thanks to an increase in the number of transactions.
It is the fastest-growing cryptocurrency since the invention of bitcoin in 2009.
The market has attracted a number of early-stage startups including Ethereum co-founder Vitalik Buterin, and it is expected to gain traction as the tech becomes more widely adopted.
Buterin told CNBC on Friday that the market’s growth is “a little bit exaggerated”.
“Ethereum has been around for a while.
It has had a pretty good first year, and the market is growing pretty quickly,” he said.”
And as more people start to understand the technology and see how it works, we are going to see a really rapid growth.”
While Ethereum has been growing rapidly, it has not gained any traction in the market as a whole.
It currently has just over $400 million in market capitalization, less than half of bitcoin’s $2.7 trillion.
While the growth has not reached the level of bitcoin, Ethereum is already trading on the leading exchanges, with an average price of $12.51, according to Coinmarketcap.com.
That compares to bitcoin’s price of around $1,200.
Ethereum’s market cap is about one-fifth that of bitcoin and is expected as the cryptocurrency grows in popularity.
“There’s definitely going to be a lot of interest in Ethereum and it’s going to expand over the next few years,” said Andrew Chen, CEO of the digital currency trading platform TradeStation.com, which recently launched an Ethereum-based platform to help investors manage their portfolio.
“If you’re a crypto investor, it’s not a bad thing, but it’s definitely a bit exaggerated,” he added.
The cryptocurrency’s popularity will also grow if it is used for long-term investment.
“Ether is not a one-trick pony,” said Chen.
“It’s really going to become more popular.”
Buterins comments on bitcoin came after the Federal Reserve said it was exploring using the digital asset as a way to help finance the financial system.