The Ethereum project started in 2014. Initially, the developers set themselves the goal of creating an improved version of Bitcoin. Now Ethereum is very different from BTC and does not compete with it, but rather complements it. Both assets are already considered blue chips in the cryptocurrency market. This is also evidenced by the fact that swap ETH to BTC is supported on the vast majority of cryptocurrency exchanges.
Main features of Ethereum
The launch of Ethereum has opened up new applications for blockchain technology, introducing its versatility and flexibility. The creators of the blockchain platform have designed a space with a well-thought-out set of tools, where any user with a minimum level of experience can independently create decentralized applications or startups.
One of the key concepts of Ethereum is smart contracts. These are algorithms that make it possible to automate many business processes. Smart contracts are written in such a way that one or another action is performed automatically when the specified conditions are reached.
On the basis of the Ethereum platform, it is possible to launch second-level blockchains, create decentralized applications for various purposes, and conclude contracts between transaction participants without the participation of third parties. The possibilities of using blockchain technology cover almost all spheres of human activity.
Ethereum price history
Ethereum has become one of the most successful cryptocurrencies and despite the high volatility, it remains one of the most promising altcoins.
The price of the coin in the first year after the launch of the blockchain was unstable. At the beginning of 2016, the asset went up from $1 to $15.20, but later lost more than half of its value rather quickly. 2017 began with consolidation, but in the spring the price of the coin began to rise and the growth continued until January 2018 with a peak at around $1,430.
The crypto winter has made its own adjustments, the Ethereum bullish trend has been replaced by a protracted bearish one. Against the backdrop of a global lockdown, the price sank to $97, but by September, the coin began to quickly restore its positions. In September 2020, it was already trading above $480. In May 2021, a new record was set - the cost of ETHIR reached $4,300. After a deep correction during the summer with another loss of more than 60% of the value, the coin rose again, already up to $4,840.
The deep drop scenario repeated itself once more during the 2022 cryptowinter. During the summer, the price of the coin dropped below $1,000 per unit. At the moment, Ethereum is trading at $1,880 per coin and analysts are generally optimistic.
What affects the price of Ethereum?
Particularly ardent crypto-skeptics are convinced that the price of ETHIRUM depends solely on speculation. There is some truth in this opinion, since the cryptocurrency market as a whole is indeed more emotional than any other market. The element of speculation and overly emotional reactions that provoke sharp price changes will always be present, but as the market matures, its influence will decrease.
Much more important are fundamental and technical factors. In 2022, the network switched to a more economical and faster Proof of Stake consensus algorithm. There are still several stages of work ahead. The need for such large-scale changes was due to the low bandwidth of the network.
Confirmation on Ethereum takes about 16 seconds, but with the growing popularity of DeFi, the platform often faced congestion. The technical improvement of the network, the development of the DeFi segment and the adoption of cryptocurrencies will contribute to a stable long-term increase in the price of Ethereum.
Separately, the regulatory factor should be mentioned. Since the legal framework for regulating the cryptocurrency market has not yet been developed, pressure from regulators will significantly affect the efficiency of both individual cryptocurrencies and the entire digital asset market.