Ethereum is a rising star in the cryptocurrency world. It has quickly become the second largest digital currency, booming in value and spurring the rise of hundreds of new rivals to Bitcoin.

Launched in 2015, the value of ether (ethereum's currency) has increased rapidly. It hit highs of $1400 in January before showing intense volatility, slumping to less than $400 and then rising to about $560.

But to put it all in context, last year saw near continual growth in cryptocurrencies like Bitcoin and Litecoin. Ethereum started 2017 trading for about $10 per coin.

What is ethereum?

Ether is the second most valuable form of digital money after Bitcoin in terms of market value. The technology it runs on is called the ethereum blockchain, which was first described by the then 19-year-old bitcoin programmer Vitalik Buterin in 2013.

The ether cryptocurrency has rocketed in popularity - and price - in recent months. The total value of all the ether in circulation as of July 6, 2018 was $47 billion (£35bn) at $462 per coin, against the $113 billion value of all the $6,500 Bitcoins.

Buterin envisaged ethereum as an improvement on bitcoin. Like Bitcoin, it is a decentralised payment network, with its own cryptograpic currency, that allows anonymous payments to be sent across the internet without the need for a bank or other third party.