What is Ethereum and why is it rising?What are the reasons? So read to the end of our article so you can learn these things, so you know if you should invest.

What is Ethereum?
This is just a short intro to Ethereum for newbies, it is also a cryptocurrency that is now second only to Bitcoin, it was founded by Vitalik Buterin who is a young genius when it comes to programming. In 2013 he was inspired to do this since he learned about Bitcoin and he realized that a Crypto can not only be currency or digital money but it is possible to do many things with it such as applications, which is why we can call Ethereum 2nd generation in crypto because of being Programmable Money and not just currency because of what we call Smart Contracts where you can set codes, conditions or computerized transaction protocols to execute contracts, meaning automated.

How Much Gains in Ethereum?
So if you invested in Ethereum last year around September 4, 2020 up to September 4, 2021, you have already earned around 765.5% according to CoinGecko. The value of your investment has grown so much in just one year that it has even surpassed those in the bank, those in the stock market and the top gainers. But of course this market is very risky and volatile because Ethereum's price started last year around $ 383.69, then after a series of ups and downs the price is as of writing this article at $ 4,523.39.

Reasons Why Ethereum Is Rising
1. NFT and Defi
We said earlier that there is a lot to do with Ethereum, it's not just currency because you can also develop applications and two of the ones that exploded in the Ethereum network are the NFT market and Defi, this year it has already arrived sales in the NFT market exceeded $ 2.5 billion. So with the growth of these two, the price of Ethereum also went up. Many are now going crazy in the NFT marketplace, there are celebrities who sell their own NFT like Paris Hilton, Snoop Dogg and many others, there are also buyers like Steph Curry who recently bought BAYC for $ 188,000, so the buyers here at NFT Art are the one who really have money, not everyone but I think majority is really like that, it's also a collection like painting in real life, it's also like an investment that you can earn. It also has many NFT branches, there are NFT games, NFT music, videos and many more.

Let's go to Defi, Defi is Decentralize Finance, in a simple explanation it looks like it's financial services like banks or exchanges, so here in Defi you just deleted the owners, meaning even if you don't have any transactions man or middle man you can borrow, stake, have interest or exchange assets. Because there are people or investors who lock their assets in exchange for gains, such as time deposits in the bank or those who borrow crypto to use in trading or use to invest in other assets.

2. Investors
The price of a cryptocurrency also rises if there are bigtime influencers or investors who are promoting, bullish or have an investment in a crypto, there are heavyweight companies that are bullish or support Ethereum such as Mastercard, Cisco, Accenture and others, and there are also public companies that hold large amounts of Ethereum such as Galaxy digital which has a $ 375 million value of Ethereum, there is also a coinbase that holds $ 124 million, the Chinese company has $ 119 and the Canadian company, MOGO has a $ 564,000 value of Ethereum and there are other companies that are mostly Crypto companies such as coinbase.

3. Ethereum 2.0
This Ethereum 2.0 is the upgraded version of Ethereum because many investors are anticipating this upgrade. It also has a factor in increasing the value of Ehereum, although there is no exact implementation date yet, the developer team is sure to start it and the Foundation. Ethereum 2.0 aims to be faster, more efficient and more transactions can be handled by the Ethereum network, because one of the things that people don't want in Ethereum is the gas or the transaction fee for using this network that can possibly reach of $ 100 or more depending on how congested the network is, so from proof of work model Ethereum 2.0 will be proof of stake model to eliminate these high gas fees.

Want to learn more about Cryptocurrency?

Follow me on Publish0x

The information above does not constitute investment advice, financial advice, trading advice, or any sort of advice. I'm not a financial advisor nor an expert in such, so make sure you always do your own research first before investing. Happy Trading, Earning, Playing and Learning everyone!

Thank you for reading!