Story by Binance
As a major competitor of Bitcoin, Ethereum has emerged as a unique and intriguing cryptocurrency. It was created as a crypto option for software developers specifically. Its platform supports both DApps and smart contracts, making it more accessible. Those interested in becoming involved in crypto investing, but desire a place to test new apps and software that is decentralized should look no further. If Ethereum is on your potential investment list, it’s important to consider many factors including current price, price predictions, and the fundamentals of its blockchain.
Ethereum launched in 2015 and is the product of Russian-Canadian programmer Vitalik Buterin. It was the first blockchain built specifically on the concept of decentralization, giving developers an unregulated place to test and sell decentralized apps. Users can build and deploy software on the Ethereum blockchain with no threat of censorship. This makes Ethereum a highly valuable asset to the developing digital world.
Unlike Bitcoin, which was developed to act primarily as a currency, Ethereum takes advantage of the other functions of the blockchain. Bitcoin has struggled to scale and implement new functions over the years, while Ethereum was built to scale quickly and efficiently with smart contracts and DApp capability. Since 2015, Ethereum’s ecosystem has grown massively, creating an innovative environment where software, apps, and NFTs thrive.
Ethereum’s current price is set at $2,522.72 and has an all-time high of $4,891.70. Its price has climbed fairly steadily this month and has seen major improvements over the past few months, which can be compared to the also everchanging Solana price. Experts are divided on whether Ethereum’s price will continue to rise in 2024 as it tends to be relatively unstable. However, several factors suggest Ethereum’s price may be about to hit new highs.
The crypto market is currently strong due to exciting real-world events. The impending approval of a Bitcoin ETF and upcoming halving have caused Bitcoin prices to soar to approximately $47,000. While high, this is still below its record high of $69,000 reached in November 2021.
Between the encouraging performance of Fidelity Investments and BlackRock’s Bitcoin funds and a halving in April, Bitcoin has set a high standard for the general crypto market. As a pioneering currency and consistently the largest cryptocurrency by market cap, Bitcoin sets the tone for the rest of the crypto market. Ethereum’s recent success can partially be attributed to the general excitement surrounding cryptocurrency.
As Ethereum is the second-most popular cryptocurrency, some enthusiasts believe that it will be next in line for ETF approval after Bitcoin. If this is the case, it would be an excellent time to invest in Ethereum. However, experts are unsure if an Ethereum ETF approval is in the near future.
The ETF process for Bitcoin has been long and arduous so hoping for an Ethereum ETF approval anytime soon could be misguided. Other currencies like Solana, which uses a delegated proof-of-stake consensus mechanism, which involves a set of validators elected by token holders to produce blocks and confirm transactions, has had similar success in the past few months. While there are different external factors affecting each currency’s individual price, Bitcoin’s potential break into the exchange would ensure cryptocurrency’s legitimacy, which is the most direct cause of prices soaring.
This article is for informational purposes only. Investing in digital assets carries a high level of risk and may not be suitable for all investors. Potential investors should ensure that they have an understanding of the risks involved, seeking professional advice where appropriate.