Ethereum is up yet again this week. It has reached another all-time high at $1,417.38 this Wednesday. The digital currency is already up by over 13,000% since last year.
It is currently the second largest cryptocurrency in terms of market capitalization with a value of $131.5 billion according to data collected by CoinDesk.
Why Is Ethereum Is Bullish Lately?
So what exactly makes Ethereum different than Bitcoin and other cryptocurrencies? One of the things that made Ethereum standout is its smart contracts. Many are already looking to use the cryptocurrency in different applications. In fact, companies are now experimenting with the technology. Among prominent companies that are planning to use the Ethereum blockchain includes JP Morgan and Microsoft to name a few.
In the past few months, Ethereum wasn’t making that much noise while Bitcoin was on a meteoric rise. However, it seems that tables have turned. ICO Projects are now coming to the front showing the real potential of what the digital currency is all about. And in reality, projects using the Ethereum blockchain have been more popular than that of Stellar and WAVES.
Being a playground of ideas, Ethereum may generate apps and solutions that may interest investors to use the cryptocurrency.
According to David Mondrus, CEO of Trive, “Ethereum is currently known as the strongest, most resilient of the cryptocurrency networks”. He also mentioned that “Bitcoin has scaling problems”.
He also mentioned that Bitcoin currently has a 1 MB limit. And this situation has been present in Bitcoin for several years now. This means that the blocks on Bitcoin can only contain a limited 1 MB of data. He clarified though that “Ethereum has its scaling problems as well, but in Ethereum’s case, the move towards scalability solution—like sharding—is well underway”.
Is 2018 a Good Year for ETH?
Is it going to be a good or a bad year for Ethereum? There was even an article written on Quartz.com stating that “In 2018, it will move from proof of work to proof of stake”.
Mati Greenspan, senior market analyst at eToro mentioned that Ethereum is the “Most widely used and most stable network”. He also mentioned that “investors shifting funds to Ether is similar to what we would call a “flight to safety” in traditional markets”.
And for this reason, a good number of individuals are actually optimistic with what Ethereum offers to the table.
If you will ask Steven Nerayoff, Ethereum’s co-creator, he is quite optimistic that it is even possible for Ethereum to reach $3,000 this year. He mentioned on CNBC’s Fast Money that Ethereum projects are the main reason why the digital currency is attracting billions of dollars. He also added that there are ten times more projects this year than last year. And for this reason, it could definitely lead to a bullish trend for Ethereum.
Keep in mind that industries and not just banks are interested in Ethereum. It is possible that businesses are actually starting to recognize the potential of Ethereum and this could play a role in the digital currency’s price in the coming months.