Due to increasing concern over the future of bitcoin, the digital currency ethereum surged to a near two-month high on Monday. According to CoinMarketCap, Ethereum was trading around 10% higher above $330 on Monday afternoon, after earlier soaring 15% to $347.05, its highest since June 23. This is at a time where the crypto world is facing a massive collapse and all the major cryptocurrencies are at an all time low. Ethereum’s jump to 10 percent has been a breather for many investors who were losing hope in cryptocurrencies altogether.
According to CoinDesk, bitcoin traded more than 1% lower near $4,055.88, down from a record high of $4,522.13 set last Thursday. Despite a $500 drop in the last few days, bitcoin is still roughly 40% higher for August and has more than quadrupled in value for the year.
The price fell as digital currency enthusiasts became more concerned about the likelihood of an upgrade proposal known as SegWit2x dividing bitcoin into bitcoin and bitcoin crashed again in November, just months after it split into bitcoin and bitcoin cash on August 1.
According to CoinMarketCap, bitcoin cash was trading 15% down near $603, down more than $450 from Saturday’s record high of $1,091.97. From a low of $210 on the day of the split on Aug. 1, the bitcoin offshoot was still up roughly 200 percent.
Meanwhile, investors have increased their faith in a smooth network upgrade for ethereum, with a proposal named “Metropolis” planned in the next weeks, which should improve transaction privacy and efficiency.
Other reasons behind Ethereum’s jump to 10 percent were strong demand from South Korean investors and the announcement that London-based online trading platform IG would begin trading ethereum on Monday. According to CryptoCompare, over 30% of ethereum trading was conducted in South Korean won. According to the site, bitcoin accounted for roughly 29% of the total, while the US currency accounted for about 25%.
Ethereum is a software platform based on blockchain that uses its own currency, ether, to let users send and receive value around the globe without the intervention of a third party.
Ethereum is based on blockchain technology like many other cryptocurrencies like Bitcoin and crypto genius etc but it’s still far more stable than other digital currencies mainly because it is a ledger technology. The native currency used to carry out transactions on Ethereum is called Ether which is usually used as ‘eth’ or its ticker symbol.
Smart contracts are code-based programmes that are registered on the Ethereum blockchain and automatically conduct specific activities when certain criteria are met. This may involve initiating a transaction in response to a certain occurrence or lending funds once collateral is deposited in a specified wallet. Smart contracts underpin all Ethereum-based dapps, as well as all dapps created on other blockchain platforms.
According to the Economic times, Ether has been trading at approximately $2,000 for the last few weeks, despite the latest drop in crypto and market values. Investors are also hopeful and see a bright future ahead for Ethereum.
There are quite a few similarities between Ethereum and Bitcoin but they are also different in many ways. Ethereum is not just a currency but essentially a ledger technology. However Bitcoin is a currency in its true essence. Ethereum, however, is far more stable than bitcoin which explains why Ethereum jumps to 10% when bitcoin is collapsing like crazy. Both Ethereum and Bitcoin are based on blockchain technology, but Etehreum is the version 2.0of bitcoin allowing developers to build decentralized apps on top of it.
Furthermore, The Enterprise Ethereum Alliance, a non-profit organization, has thrown its weight behind Ethereum’s technology. This is a supergroup of Fortune 500 firms that have pledged to collaborate in order to learn and improve Ethereum’s blockchain technology, also known as “smart contract” technology. Smart contracts, in this sense, refer to the ability of demanding commercial applications to automate exceedingly complicated applications.
We can see that Ethereum jumps to 10 percent at a time where all other cryptocurrencies are declining at an alarming rate. This goes to show that ethereum has a lot more stability and can act as a hedge against equity stocks, something that all other cryptocurrencies like Bitcoin claimed. The Ethereum Ecosystem is booming and it is growing in popularity in fields like arts and collectibles, finance and technology majorly because of its dApps. The potential for Ethereum’s technology to impact projects and procedures across many industries is what has so many people excited. It is far from flawless technology, but it has paved the way for a wide range of creative innovations.