Our latest cryptocurrency report looks at Ethereum’s recent success with an eye on whether it will impact the entire altcoin market. Ethereum is on a bullish run and it continues to grow in popularity. It’s poised to overtake Bitcoin in the future.
Ethereum is one of the biggest cryptocurrencies. It’s been making rounds as a top contender for years now, coming next to Bitcoin. Give it a shot if you’re looking around! ETH is becoming a bigger threat in the crypto world. It has outperformed both BTC and other major currencies this year and its market cap is currently at US$4.93 billion. Lately, it has been bolstered because of smart contracts being launched on their blockchain platform.
Ethereum, which trades on a technology platform called the Ethereum blockchain, is almost ten times the price it was when it bottomed out during the Covid period due to market panic in March 2020. The cryptocurrency market is much younger than you might think, but it’s shown tremendous growth in the last five years. Experts believe that the significant increase in the value of bitcoin is due to the immense amount of money flooding into all major cryptocurrencies. It is increasingly seen as a good store-of-value asset, and it’s also proving to be quite popular for speculation.
Ethereum Price Surge
The price of Ethereum in May 2021 rose to an all-time high, exceeding 4 000 USD for the first time in history. Until then, the highest the ETH has ever reached was 3000 USD. Data analysts and crypto traders at the beginning of May predicted that Ether would keep rising, and their predictions turned out to be true! They also believe the speculations of Ethereum’s several improvements and new features to be rolled out over the course of the next few months, will soon allow Ether to overtake Bitcoin.
In 2021 Ethereum’s growth has outperformed Bitcoin- the most trusted cryptocurrency on the market, which has increased by a mere sevenfold since March. Over the course of time, BTC’s value has only seen an average 97% rise in its worth. And after a major price rally, BTC crossed the all-time high and was valued at US$65,000. However, it has since fallen back to its original price. The ETH’s price experienced another surge at the end of September, which was great given the long period of low levels. Its price has fallen between but that hasn’t prevented it from again experiencing a 10% gain.
What are the reasons behind its massive price surge?
Experts believe that Ethereum follows Bitcoin’s price which, thanks to the pandemic, has been going up lately. At the same time, Ethereum just lagged in terms of price although this is a common pattern in most cryptocurrencies. The price of ETH has been catching up with Bitcoin’s for some time now. Additionally, the Ethereum platform is one of the most widely adopted DApps by developers. As a result, investors are flocking to Ethereum.
Blockchain technology has been developing many updated versions of its software and plans to release the ETH 2.0 update at the end of this month or in early 2022. These features that our upgrade has to offer will give you lower fees and quicker transactions. Investors are intrigued by the possibility of this app’s growth in popularity, too. The recent increase in the Ether price coincides with institutional investors looking to store their money in ETH. This new demand has led to an increased number of ETH for sale for this purpose, which puts pressure on the price.
How ETH may impact other Altcoins
The advent of Ethereum has caused many significant changes to the crypto landscape. Altcoins have either adapted or faded into obscurity.
All currencies other than Bitcoin are called ‘altcoins’. The crypto market crashed recently and the prices of Bitcoin witnessed substantial fluctuation. Investors are quickly shifting away from Bitcoin and focusing on more profitable ‘altcoins’ in the market.
However, the market for altcoins isn’t robust yet and has seen a lot of growth in the past few years. Cryptocurrency investors are now flocking to this market to take advantage of short-term profit opportunities, with the number of coins listed in the cryptocurrency market multiplying in recent months. Quicksilver violations are things that happen within the market quickly, but with low levels of interest in the space.
There are many altcoin investments that offer significant risk in terms of volatility. These investments may be best for investors without a lot of time who want a convenient & easy way to make money. Cryptocurrency traders may experience a lot of stress when prices fluctuate as they are expecting high returns. This is where AI investment assistants can be helpful.
Ethereum was an amazing coin when it was introduced in 2016, but many people still don’t consider it to be an altcoin due to its massive market cap. While BTC transactions take about 15 minutes to complete, ETH can do the same in about 15 seconds. This makes them both speedy and competitive when it comes to cost. Users are able to maximize their XRP without too much slippage or volatility from ETH.
Future Landscape of Ethereum
With the market flooding with hype, any type of cryptocurrency can easily increase/decrease in terms of value. It remains to be seen if Bitcoin will maintain its position as the top crypto after Ether overtakes it. With a poor feature set and lacking innovation, Bitcoin has achieved a first-mover advantage in the cryptocurrency industry. But it is unlikely to stay so. As this technology continues to develop, then probably the cryptocurrency Ethereum will rise to showcase its true market potential around the world.
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