As an open source platform, Ethereum utilises blockchain technology to create and run decentralised digital applications. This allows users to make agreements and conduct transactions with each other to buy, sell and trade goods and services; essentially cutting out the middleman. The cryptocurrency market overall can be very volatile, therefore impacting Ethereum’s price on a day to day basis.
Founded in 2014 by 19-year old Russian Canadian, Vitalik Buterin, the platform initially grew through Initial Coin Offering (ICO); a concept similar to IPO where investors purchase shares in the company. However, around 7 months later, the platform was successful enough to move away from this model, having already raised $18.4 million in funds. The original purpose of the platform was to democratize everything from organizations, business and currencies, putting economic control back in the hands of individuals and taking it away from the world’s central banks, corporations and power brokers.
Keep reading to find out everything you need to know on Ethereum, including how it’s currently performing within the market and what trends we are likely to see in the near future…
The current state of Cryptocurrencies
With the global markets taking a turn for the worst in recent weeks, cryptocurrencies were no exception. With volatility being heightened, there’s no denying that sellers currently have the upper hand. Whilst things have recovered slightly from the beginning of march when the market took a deep dive, a lot of the January/ February progress of popular cryptocurrencies has been erased.
Nevertheless, whilst recent market activity had investors seesawing back and forth, the crypto-assets losses slowed near to $0.20, with XRP/USD making the most recovery after achieving over 2% in gains shortly after the whirlwind price drop.
How does Ethereum currently sit within the market?
As Ethereum is in close correlation to Bitcoin, Bitcoin’s price decline from $10,500 to $8200 over the last three weeks has had a significant impact on Ethereum prices. Currently, Ethereum sits at $243.45, with its recovery set to lead the way for many altcoins that are either built on Ethereum or utilise the DeFi infrastructure.
However, with the development of Ethereum 2.0 currently in the pipeline, the updated platform aims to achieve distributed consensus by leveraging the Proof of Stake algorithm. Whilst this may send Ethereum into another volatile period, it’s far from the crowd funding days of 2014.
Ethereum Price predictions
Despite the recent volatile market, every cloud has a silver lining as Ethereum reached its highest monthly figure on record this February, processing over $372M in trading volume, growing by 62% compared to January. The previous all time high to be achieved was $358M, which was reached in the summer of 2019.
In addition, top analysts are predicting Ethereum prices to skyrocket this year. Su Zhu, the CEO at forex, predicts that ‘the trading pair of the DAI stablecoin and Coinbase’s USDC may be a sign that Ethereum (and likely the rest of the market, Bitcoin included) has bottomed’.
What’s more, there are now sings that cryptocurrency investors are starting to regain confidence in the market, with key players beginning to heavily invest again.
Overall, whilst the cryptocurrency market has recently been through a rough patch, as with many types of investment, Ethereum in particular seems to now be picking up. What’s more, with recent partnerships such as that of Italian football club Juventus and Sorare, a blockchain-powered fantasy football start-up, the possibilities of this platform seem to be continually growing.