Just within the first week of 2018 and top digital currencies are already on a bullish trend. Ethereum, which is currently ranked third just behind Bitcoin and Ripple, is already hitting an all-time high at $1,075.
In fact, there are experts that believe Ethereum’s secure technology can help the cryptocurrency win more financial support than other digital currencies in the market today.
Bitcoin has been recovering over the past days hitting above $17,000. Though it is still 13% below its all-time high last December 2017, many are also optimistic that Bitcoin is back on its bullish trend.
But the story of the day is Ethereum. It has shot up by as much as 9.6% in one day. It has made more than a 30% increase so far this January. Based on CoinMarketCap’s data, Ethereum has a total market capitalization of $96 billion. And unlike Bitcoin, what sets this cryptocurrency apart is the ability of developers to build their own applications using its network.
For this reason, many initial coin offerings and other apps have made use of Ethereum. It is also believed that Ethereum’s blockchain tech is more resilient when it comes to cyber attacks.
What Causes the Increase?
It is certainly hard to say at this point what contributed to Ethereum’s recent jump. On the other hand, Ripple’s rise to second biggest cryptocurrency is because of the number of banks and institutions that have agreed to partner up with them. It is possible that Ethereum’s bullish trend could be coming from its plans to improve its network.
Improved Ethereum Network
Vitalik Buterin, co-founder of Ethereum, announced on Tuesday that they are launching two subsidy programs that will enable an improved Ethereum network. This will allow the Ethereum network to process more transactions.
Benjamin Roberts, co-founder and CEO of Citizen Hex which is an Ethereum-dependent startup business, mentioned that the upgrade has helped the price of Ethereum break into the $1,000 mark. “I think people are just starting to wake up and realize the differences”.
Banking Giants and Ethereum
Because of the flexibility offered by Ethereum, many consider it better than Bitcoin to some extent. In fact, there is already a group of companies in the finance sector including UBS, Credit Suisse, and Barclay that has announced their plans of adopting the Ethereum blockchain. The reason for this is that companies are hoping to make it easier to meet the new European Union reporting standards under the Markets in Financial Instruments Directive II.
This enables the banking group to anonymously submit information in their private blockchain and have it cross-checked for any irregularities. Joseph Lubin, co-founder of Ethereum, mentioned that “Ether can be a more programmable money. We conceive it as a crypto fuel because it powers these programs on the world computer”.
Will Ethereum be able to get the second spot from Ripple this year? Is this bullish trend just a start of things to come?
In 2017, investors realized that there are many other cryptocurrencies that they can actually invest on. And in reality, it is possible that other digital currencies take the throne away from Bitcoin given the trajectory of Ethereum and other altcoins.