Ethereum Is on a Roll, Quadrupling in Value This Year
Ethereum continues its record run, hitting $3,400 plus, up over 15 percent on the day. Nigel Green, CEO of deVere Group, believes Ether will broach $5,000 within the next few days. Green is of the opinion, one mimicked by others, that Ethereums time has arrived, and it is well-positioned to increase its share of the market.
Although Ether has spent the last five years in the shadow of Bitcoin, it is now commanding center stage after posting huge gains, solidifying its second place in the crypto cast list.
Ether is up over 320 percent YTD, compared to a 98 percent rise in the price of Bitcoin. It is now coming into its own, capturing the attention of investors.
Why is Ethereum Going Up?
Over the last few years, crypto has come into its own. Hardly a day goes by when there isn’t news about another coin. Especially amongst the younger generation, cryptocurrencies have become a popular investment. Crypto is a global phenomenon, people in all corners of the globe are becoming involved. The primary reason for the interest in crypto is the unheard-of rate of return over the last couple of years.
Ethereum, the second most popular crypto has reached a new all-time high, and it continues to climb.
Ether at a New All-time High
Ether is currently in the limelight, breaking its all-time high and setting a new record. In the six years of existence, Ether had never crossed the $3000 mark. Ether is now trading at an all-time high and many experts believe it will continue rising.
Sound reasons support the rise. For one, most major cryptocurrencies, including Ether, tend to follow Bitcoin as its price rises and falls. Over the last few months, Bitcoin has enjoyed significant gains, however, Ether kept lagging. Some experts see the dramatic increase in the value of Ether as it catching up with the gains of Bitcoin.
Will Ethereum Crash in the Future?
Ethereum was initially launched in 2016 by a 19-year-old Russian, Vitalik Buterin. Being a smart contract network, it can host and support decentralized applications. There is the belief that as ETH 2.0 launches this year, the price of Ethereum will continue to increase.
Bitcoin serves no purpose other than to act as a store of value, while Ethereum on the other hand is used by several crypto projects as their basis. This being the case, it is highly unlikely that Ethereum will crash in the future. The only issues that may stand in their way are a total collapse of the whole crypto market, or the United States Government banning cryptos, neither of which is expected to happen.
There Is Room for More than One Winner
The dramatic rise of Ethereum seems to suggest that as the digital token sector evolves and matures, there is room at the top for another winner. According to statistics published by CoinGecko, Bitcoin started the year with a commanding 70 percent of the market. It is now down to 46 percent. At the same time, Ether is up to a 15 percent market share.
A year ago. Ether was worth less than $150. Since then, it has embarked on a rapidly rising trajectory that has brought it to where it is today.
Although Bitcoin still maintains top market share, the momentum of other tokens is grabbing the attention of investors. Some argue that investors are becoming more comfortable with a variety of crypto options. Others contend the market sector may be the beneficiary of an investing mania fueled by stimulus money.
Ether is standing in the limelight at the moment. The affiliated Ethereum blockchain upgrade and the popularity of the network are two factors that are being cited for the price rally. Rich Ross, strategist for Evercore, has set a target of $3,900 for the token.
The listing last month of crypto exchange Coinbase Global, Inc., is another sign of how investors have taken to the sector, despite the recognized risks of volatility and closer scrutiny by regulators.