A representation of cryptocurrency Ethereum is seen in this illustration taken August 6, 2021. REUTERS/Dado Ruvic/Illustration

Nov 3 (Reuters) – Ether, the world’s second-largest cryptocurrency, hit an all-time high on Wednesday, catching up with bitcoin’s rally and riding on news of wider blockchain adoption.

The ether token, which underpins the ethereum blockchain network, rose as high as $4,670.81, as of 3:15 p.m. EDT.

The cryptocurrency extended its gains, breaching the previous day’s $4,600 level, after the U.S. Federal Reserve announced a tapering of its asset purchases, but held to its belief that high inflation would prove “transitory” and likely not require a fast rise in interest rates. read more

Ether is up more than 10% this week.

In the days since bitcoin , the world’s largest cryptocurrency, hit its record high of $67,016.5 on Oct. 20, other tokens on the base layer of blockchain networks, known as Layer 1 networks, have gathered momentum.

“The correlation of crypto versus equities and risk-on sentiments is high,” said Danny Chong, chief executive officer of decentralised asset tracking platform Tranchess, who expects further gains over the quarter.

“Everyone is expecting a
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