What's happening at the Ethereum market?
Ethereum has become the cryptocurrency with the best performance of the week, and in CryptoKnowmics, we tell you what happens in its market.
Within the crypto community, we tend to focus most of the time on the price of Bitcoin. Lengthy analyses are carried out on the events that could affect the price of this cryptocurrency, at the same time that the reliable predictions of the so-called crypto influencers are commented and re-commented, each one more optimistic than the previous one.
However, the truth is that the crypto market is not only Bitcoin. There is a multitude of cryptocurrencies created to satisfy different demands, which even Bitcoin cannot cover by itself, because at the end of the day, Satoshi Nakamoto's original design could not foresee the critical technological changes that followed.
We are referring to coins such as Ethereum, EOS or TRON, explicitly created as instruments to facilitate the conclusion of so-called "smart contracts," and which have allowed the emergence of decentralized applications.
We also talked about XRP or Corda, the products with which Ripple and R3 are revolutionizing the world of finance, making international transactions that could previously take hours to execute are now carried out in a matter of seconds.
Moreover, while the Bitcoins market has now become a side market, it is one of these cryptocurrencies that is gaining the attention of investors due to the rapid rise in its price in recent days. We refer, of course to Ethereum.
Last week's Ethereum chart
As can be seen in the graph, Ethereum's growth has not been small, being quoted only five days ago at around 178 dollars, before making the leap that has placed the cryptocurrency at 221.61 dollars per ETH at the time of writing this article.
However, what drove this spectacular growth? In Crypt Trend we find three factors that serve to explain the growth in the price of Ethereum, starting of course from the fact that 2019 saw the fall in the valuation of the ETH to historic lows so that this growth would be first and foremost a recovery of the ground lost by the cryptocurrency.
Last year's Ethereum chart
The second factor behind this growth would be BitPay's announcement that it will begin to support cryptocurrency in transactions made with the platform, which would open the door to the mass use of ETH for the acquisition of goods and services.
However, undoubtedly the determining factor in the increase of the Ethereum price, has been the announcement of the release of version 2.0 of the cryptocurrency in 2020, which is expected to solve problems of scalability, as well as to allow a better integration of the work of the developers in the platform, and therefore increase the capacity of the ETH Blockchain.
Therefore, although the advance in the price of Ethereum will likely stop soon, when the speculative forces that drive it will deflate in turn, the increase in the price of cryptocurrency is not separate from the increase in its capabilities, and therefore we can consider it as a sustainable growth over time.
About The Author
Juan AponteI am an industrial engineer specializing in blockchain. Enthusiast of cryptocurrencies and writing the latest news regarding the Crypto world.
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