Ether runs on an underlying technology called Ethereum, which is a different blockchain to the one that underpins bitcoin.

While ether does have digital "coins" like bitcoin, companies are more focused on how the Ethereum blockchain could be used in real-world applications.Ethereum has been designed to support so-called smart contract applications. A smart contract is a computer program that can automatically execute the terms of a contract when certain conditions are met, potentially taking a lot of the human involvement out of completing a deal. Barclays for example, have used a form of this technology to trade derivatives.

Not all in the market are convinced that the ether rally will last. Bitcoin trader Jason Hamilton is worried that products like Ethereum could be cloned.

"People are buying a specific blockchain, but the big interests are in the technology. They'll probably make their own clones and the ether tokens everyone is buying won't be used for much except trading. Who knows, though," Hamilton told CNBC via a direct message on Twitter.

"I don't usually trade ether. I'm afraid of that bubble bursting, but it could go on bubbling up for a long time still."