As at the time of writing this piece, Ethereum´s price went all-time high with over $4,820. As most investors celebrate this win, to others, it will trigger some kind of reflection on how the journey started. Towards the end of 2019, Ethereum price was still crawling around $400, but it seemed to have had a fast move from $400-$3000 in a space of 6 months. This can be attributed to the massive adaptation of the coin by industries, especially in the oil industry like MetLife, Inc., Mastercard Incorporated, Cisco Systems, Inc., and BP PLC.
But the party didn’t quite last because of the global lockdown, which also affected the global oil sector. For quite some time, Ethereum price was really stagnant, dangling between $2,800 and $3,500. This movement persisted up till early this November when it started getting back on track again, we are talking about the current price of $4,820. Need we talk about the crash around May period, a fate that also affected Bitcoin; it was really a trying moment for both Ethereum and Bitcoin alike considering the Chinese sanction that crippled almost half of the world’s top cryptocurrencies. Indeed, it is a poetic justice not, not just for traders on Bitvavo.com, but for the global cryptocurrency community alike.
What Caused the Ethereum Price to Rise?
Not just the exchangers, the global cryptocurrency community witnessed a simultaneous rise in Ethereum price. But it seems that the whole event isn’t a coincidence after all. Before now, there have been exper predictions that have to do with an intending increase.
If you are conversant with the market movement, you’d notice that BTC moved to $68,000 exactly 17 days after it reached $58,000. And the Ethereum price rose by 8%, exactly 8 days after the Bitcoin increase. According to professionals, the reason for this increase is traced to the growing interest in Defi. This interest is wrapped around the sudden need for trading and lending on the blockchain. Another reason is the growing interest in digital assets and media, which most of them are tired of the Ethereum network, thus, the increase in Ethereum price. Currently, this single event has turned into a huge media discussion, with professionals giving their own side of the reason for the eventual increase in Ethereum price.
It is also worthy of mention that the launch of the first-ever US Bitcoin futures: the Exchange Traded Fund (ETF). The ETF is not like most exchanges where traders converge, it is a platform that allows interested parties to invest in something without actually making the purchase, it is more like buying a company share. By allowing individuals to buy into the ETFs, it has every possibility of making the price of BTC rise, and the BTC has a way of taking other coins on this journey to the moon – and Ethereum is in no way escaping this ‘drag.’ According to some expert analysis, Ethereum price will one day surpass the price of Bitcoin hence, it will become the world’s biggest coin.
This is not just a random assumption, experts like Rahul Rai confirmed this assertion. According to him, there is definitely a good chance of Ethereum surpassing the price of bitcoin in the future. And he went ahead to add that he won’t be surprised if it happens anytime soon, probably by the middle of next year. And regarding the relationship between Ethereum, NFTs, and DeFi, experts believe that Ethereum is trying so hard to drive global finance in time to come. And if it eventually succeeds, it will end up creating a much bigger market, bigger than what is applicable today. If we are to measure it in figures, we are looking at trillions of US dollars.
Finally, you have to understand that the Ethereum price as we see it on exchangers is not where it should be. The future of that coin is yet to come, and only those who are awake, and have the capacity to follow trends, will benefit from such activity. Furthermore, as we approach the year 2022, there are strong indicators that Ethereum as a coin will outperform most coins, judging from the activities happening around it.
Barry Lachey is a Professional Editor at Zobuz. Previously He has also worked for Moxly Sports and Network Resources “Joe Joe.” he is a graduate of the Kings College at the University of Thames Valley London. You can reach Barry via email or by phone.