Ethereum prices surged on Monday to record levels, after bitcoin also hit all-time highs, as appetite for digital assets continues to grow.

The cryptocurrency was trading at around $407.10 in early Monday morning trading, according to data from industry website Coinmarketcap. This is a record level which marks a more than 5,001 percent rise in price since Jan. 1, when ethereum was trading at $7.98.

It comes after bitcoin traded above $3,000 for the first time on Sunday, continuing its huge rally for the year.

"The strong interest in bitcoin does boost investors' appetite for alternative cryptocurrencies where superior gains are also being seen," Pavel Matveev, co-founder of Wirex, a personal finance app that provides a cryptocurrency wallet and debit card, told CNBC by email.

"There is some correlation between cryptocurrencies in this sense but there is also fundamental demand for Ethereum in its own right. Ethereum and bitcoin aren't directly competing as they serve different needs."