—TechRound does not recommend or endorse any financial, gambling, investment or trading advice or practices. all articles are purely informational—
Ethereum (ETH) has experienced significant growth in 2024, gaining even more attention as a digital token. Although often overshadowed by Bitcoin, the unique structure of ETH and its integration into decentralised finance and non-fungible tokens (NFTs) continue to drive interest. Advancements in decentralised applications and Ethereum network upgrades also contribute to its demand.
However, Ethereum has a history of volatility. Observing market dynamics and understanding the factors that influence the Ethereum price is important.
Ethereum as an Altcoin
Ethereum is the largest altcoin and the second-largest cryptocurrency. Its advanced features and blockchain solutions have set it apart from other crypto tokens.
Ethereum operates on an open-source blockchain with integrated smart contract functionality. This technology is used primarily in the decentralised finance market. Ethereum offers additional security by having validators continually update and maintain the network.
Ethereum’s blockchain projects have expanded blockchain technology. Through continued updates, ETH has improved faster transaction speed and efficiency with decentralised applications.
The Appeals of Ethereum as an Altcoin
Ethereum is entirely decentralised, meaning no government or financial institution controls the network. Its open-source blockchain integrates smart contracts, an important technology in decentralised finance, with the network regularly maintained and updated by validators to enhance security.
Ethereum’s blockchain projects have advanced the broader blockchain landscape, implementing solutions to improve transaction speed and efficiency in decentralised applications globally.
The Advantages and Disadvantages of Ethereum’s Structure
Ethereum’s independence from centralised financial systems ensures it functions without outside control. This independence reduces the impact of factors like government regulations, protecting the network’s security and the privacy of its users.
On the other hand, the unregulated nature and decentralised architecture of Ethereum can result in increased market fluctuations. Moreover, due to its decentralised structure, it can be difficult to implement major improvements as they require widespread agreement among participants and users.
How Ethereum Holds Up to the Competition
Ethereum ranks among the top three cryptocurrencies. Though it has a lower market capitalisation than Bitcoin, the leading digital currency, Ethereum has greater versatility. Its user-friendly platform enables developers to create smart contracts effortlessly.
Launched in 2015, Ethereum has expanded into a comprehensive platform, offering both a cryptocurrency and a blockchain-powered operating system that supports numerous applications.
The Price and History of Ethereum
Ethereum’s price spiked in 2024, reaching a record high of $3,893.39 in July before adjusting back down. While the price has since cooled, it has been on an overall upswing since the start of the year.
Ethereum prices first skyrocketed in 2017, going from a trade value of around $10 to the triple digits. It then topped out in January 2018, surpassing $1,400. During the 2021 cryptocurrency bull market, Ethereum reached a new all-time high of $4,891.70. Though the price has since fallen, it still holds the spot as the second-largest cryptocurrency by market capitalisation.
Influences on Ethereum Price
Multiple factors influence the price of Ethereum. Like other markets, ETH token value operates on supply and demand. Factors influencing these can include technological developments, the regulatory environment, market competition, and investor confidence.
Ethereum’s platform undergoes various technological upgrades, which can affect its price. As reported by Forbes Advisor, the Cancun-Deneb (Dencun) upgrade in March 2024 introduced the new features of danksharding and proto-danksharding. These implementations improved the network’s capacity and reduced transaction fees, driving ETH price through increased demand.
Regulatory shifts also influence the price of Ethereum. Bans or restrictions on crypto trading can decrease demand and prices. On the flip side, positive regulatory changes, such as the approval of the Ethereum ETF and legalisation of it as a payment, can lead to price increases.
Market competition and sentiment further influence Ethereum’s performance. Movements in the price of other major cryptocurrencies, such as Bitcoin, can impact ETH prices, as can positive news or significant industry developments.
Ethereum’s Position
Since its debut in 2015, Ethereum has gained recognition as a central player in the crypto market, particularly due to its smart contract capabilities and ongoing technological advancements. Despite periodic market volatility, Ethereum’s expanding applications, regulatory developments, and network updates continue to shape its position and influence in the global cryptocurrency landscape.
—TechRound does not recommend or endorse any financial, gambling, investment or trading advice or practices. all articles are purely informational—
