The start of 2018 has been a bumper one for cryptocurrency with the total market capacity jumping $150 billion in just five days. Bitcoin has remained relatively flat, so it has been the job of the altcoins to boost the total investment, and Ethereum has been leading the way.
For the first time a few hours ago, Ethereum reached a thousand dollars during the morning trading session in Asia. Cryptocurrencies have grown so much that mainstream media such as Forbes are now reporting on the rise of Ethereum.
According to Coinmarketcap, Ether rose to a record high of $1,045 before falling back a little. The jump represents an overall increase of 38% for the week and 130% over the last month. ETH had a huge year in 2017, rising from around $10 in January to over $750 at the end of December, a monumental 7400% compared to Bitcoin’s 1600% rise.
Ether is used as a payment system for decentralized applications; it is one of the most established cryptocurrencies and, consequently, a top choice for new investors. Senior market analyst for social trading platform eToro, Mati Greenspan, sung its praises:
Ethereum is currently the most established cryptocurrency in the market and many believe that it is the future of the internet. Money continues to flow into blockchain networks and Ethereum is simply the strongest one.
Tim Enneking, managing director of Crypto Asset Management, maintains that there is a feeling that Ethereum is still relatively undervalued despite its recent price increases.
The number of ICOs using the Ethereum platform has been increasing, which has directly influenced the price of the world’s number three digital asset. ETH has only recently lost out on the second spot to Ripple. With Bitcoin transactions slowing in speed and increasing in cost, many traders are switching to Ethereum to participate in ICOs and buy smaller altcoins.
Chris Keshian, co-founder of the Apex Token Fund, said that there are a large number of ERC20 ICOs launching on Ethereum this month. Investors are buying Ether to participate in these new ICOs or to accumulate gains fueled by the anticipation.
CEO of 360 Blockchain USA, Jeff Koyen, added:
News of mainstream adoption is certainly driving the rally to some degree, but I think it’s also a reaction to the Bitcoin skeptics who have been especially vocal this week. This year, we’ll see less wholesale condemnation of crypto, and more specialized sniping at certain coins — Bitcoin being the most obvious target. Only the most stubborn dinosaurs and luddites will cling to their position that crypto is a passing fad.
Ethereum is traded on all major exchanges with Binance leading the way, carrying over 20% of the total. Trade volume over the past 24 hours has been just under $7 billion, and Ethereum’s total market capacity at the time of writing has just surpassed $100 billion.
[Disclosure: the author of this article is a holder of Ethereum]
Images courtesy of Pxhere and Bitcoinist archives.