Ethereum has been popular for quite some time now, but recently has soared in value in the past couple of weeks. At rank 2 in market cap for the entire crypto market, the decentralized platform allows you to transfer money, deploy personal code, and interact with applications (DApps) created by other developers. With this flexibility, it's no wonder why Ethereum is the platform of choice for developers and traders alike.
The main idea behind Ethereum is that developers can create and launch their own codes that run across a distributed network, rather than a single centralized server. This decentralizing aspect attracts the everyday individual more than ever lately, but why? Let's take a closer look at why Ethereum is on the rise!
I am not sponsored by anyone or anything mentioned in this article.
This is not financial advice. I am not a financial advisor.
Please do your own research before making any decisions before investing.
This article is meant for educational purposes only.
Just this week alone, the value of Ethereum (ETH) has risen by 36.77% at the time of writing this article. In 2020, $231 million worth of ETH was traded daily on exchanges around the world. To begin 2021, ETH is being traded at $2.7 billion around the world. Of course, the more that crypto is on the news/social platforms in general, the higher amount of exposure the crypto community will obtain. The acceleration of decentralized finance (DeFi) has boosted the interested in ETH at a rapid rate. Ethereum also unveiled ETH2, a massive upgrade to the platform that can reward stakeholders with ETH by holding onto their ETH in their exchange or wallet.
ETH2 refers to a set of interconnected upgrades that will make Ethereum more scalable, more secure, and offer a more sustainable future. This upgrade comes after the Ethereum network realized the growth potential and popularity of their platform. The upgrades are currently being build by multiple teams across the Ethereum ecosystem and are being rolled out as we speak.
Since launch in 2015, Ethereum has been incredibly successful... but there's always that underlying factor that systems will need to be upgraded eventually. Higher demand for ETH is driving up the cost of transaction fees, making it more expensive for the user to conduct transactions and/or trade. The algorithms that keep Ethereum secure and decentralized is beginning to have a bigger environmental impact the more popular it gets. Also, I'm sure you've noticed that the network has been somewhat clogged lately, so this upgrade is aiming to reduce network congestion and improve speeds to better service users around the world.
These upgrades aren't the only thing pushing Ethereum up the charts though. Institutions around the world are becoming more comfortable with the idea that owning crypto has great value long-term. You've seen the articles surrounding major corporations dipping into Bitcoin to snag coins for themselves, and Ethereum is yet to follow. Whether or not you are an experienced trader, the hype generated around crypto lately is bound to reach your viewing platforms. The overall exposure that crypto has been receiving has driven the market in extremely positive ways. Ethereum is no exception to this!
As mentioned before, we started off the year trading Ethereum at $2.7 billion. As of writing this article, we are seeing a trading volume over the past 24 hours at >$60 billion. This is a rise of over $55 billion over the past 5 months alone. With this rate of growth in value, you don't even need to know about the upgrades and popularity surrounding crypto to know it's a great investment! Any market exchange or crypto wallet will show you the price of Ethereum alongside Bitcoin... usually directly on the front page. It's everywhere... on social media, news outlets, blogging website, your parents and grandparents are even talking about it now.
I'm excited to watch the continued growth of Ethereum in 2021. Q1 has been monumental for the crypto community as a whole, and Altcoins are beginning to become more popular each passing day. While Ethereum is extremely popular already, Bitcoin is still rising above all others in terms of market cap and trading volume... for now. In my opinion, Ethereum will become just as valuable as Bitcoin in our lifetime. The ecosystem flexibility allows anyone, from the new trader to complex developer, to participate in DeFi trading. Let's sit back and see what these new upgrades coming to the network do to the already rising value! You can check out a list of the upgrades coming to the network here.
What do you think Ethereum will be valued at by the end of 2021?
Let us know in the comments down below!
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