A hike in the price of Ethereum

Ethereum price

Ethereum is no stranger to explosive price growths and corrections throughout its short life. The recent spike may be nothing more than a temporary correction. Moreover, it could even signal a bigger bull run coming for the world’s second-biggest cryptocurrency market cap.

The rise in Ethereum prices made it past Tencent’s market cap which currently stands at 12 billion dollars making it just second to Bitcoin which currently holds a volume exceeding 1 trillion dollars across all exchanges.

What led to the increase in the value of Ethereum?

The market activity of Ethereum is still in the development stage. One of the primary reasons for this is that Ethereum was launched in 2015. The main purpose behind its creation was to create a decentralized platform that would enable its users to run distributed applications. However, it took almost 5 years for such an application to see the light of day.

Ethereum’s rise has been attributed to its ability to handle more transactions at faster speeds while maintaining a much lower transaction fee compared with traditional blockchain solutions like Bitcoin and Bitcoin Cash. Also, it has given impetus to new applications that require high-volume transactions like video streaming services and social media networks that can’t use Blockchain directly.

What are the experts and press saying regarding the hike in value?

The press has been all about the Ethereum price rise over the past few months. It rode into the top three highest market caps of cryptocurrencies. The media followed it, with headlines like “Ethereum Price Hits Record High of $1,500,” “Ethereum Price Climbs to All-Time High Above $1,400 as Crypto Market Cap Hits $150 Billion,” and “Ethereum Price at an All-Time High above $1,300.

The recent rise in Ethereum prices is just a correction given some experts regarding its growth pattern. William Mougayar, author of “The Business Blockchain” and an investor in Ethereum said, “It was the fifth-largest market cap around the end of November, now it’s second. That’s how quickly this thing is growing. It has a lot of room to run after that kind of move.”

Mougayar also added that if Ethereum can hold its current price levels, it could even form a new all-time high by January next year. The recent development in the platform such as Plasma Cash and Sharding should also help Ethereum prices to sustain their upward momentum.

What are the benefits of investing in Ethereum?

The Ethereum ecosystem

Besides having the benefit of being the second-largest cryptocurrency, Ethereum has also been credited with various innovative breakthroughs. These include solutions from Microsoft and J.P. Morgan that allow financial institutions to use their programs on the Ethereum network. The network prides itself on its flexibility in building applications. These applications can be used across a wide range of industries. It can be used in both private and public sector including banking, government agencies and healthcare.

Ethereum’s decentralized design allows users to make transactions without involving third parties, which keeps transactions secure and more efficient. Additionally, Ethereum has its operation network called the Geth network and its decentralized blockchain that runs smart contracts by using Ether as fuel.

Ethereum’s partnerships

Ethereum has also partnered with firms like Toyota, Merck, Samsung, BP and Microsoft to create blockchain-based apps. As the platform matures it will continue to attract more developers to come up with innovative new programs. These programs will solve everyday problems. The future of Ethereum is still bright despite its huge recent drop due to the rise in its trading volume and market cap. Ether remains one of the strongest cryptocurrencies in the world, despite unprecedented losses.

The Ethereum platform will continue to attract new users as more firms embrace development on the Ethereum blockchain. Despite the recent trading volume drop for Ether, the cryptocurrency has a bright future ahead. It is likely to experience an explosive bull run in the coming years.

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