Ethereum Price Volatility
Ethereum the cryptocurrency is getting popularity everyday in terms of its usage, price as well as the volatility. Ethereum claims it can be used for “trading, codifying, and decentralizing” and therefore they have more liquidity than the bitcoin itself. A recent analysis on the price of Ethereum suggests that it has a true potential of going above $1500 within this financial year. The price prediction of ethereum might come true at the end of 2020 giving ethereum a huge market capitalization of more than $148 billion.
What was the price of Ethereum as it was introduced?
As the Ethereum was introduced the trade was started att $2 and for a brief moment it went up to $3. But for the rest of the year, it was on the base of $2. Ethereum closes at just $0.9 and was slow initially.
In 2016
In mid-June, the price of the cryptocurrency went to $20.5. However, the hack resulted in the fall in the price and at the end of the year, the price hung at $8. The currency forked into two and that’s when Ethereum hit a major surge in the growth.
In 2017 what was the price ?
In 2017 there was a major shift in the price point. It reached the highest price point of $840. And at the end of year 2017 Ethereum price closed at $740. In the early year of 2018, the price hit an all-time high of $1,360. The cryptocurrency attained major popularity and it came one the biggest beneficiary in the world of cryptocurrency right after Bitcoin.
The two-year timeline for the Price of Ethereum
A lot of factors contributed to the ethereum price volatility. Before discussing the factors that resulted in the volatility, let’s dive into the price between 2018 to 2020.In the year of 2017, about 8,800 percent of gain was noticed as the Ethereum price closed at $712. But in the mid-month of January, we saw a huge rise as the price hit at $1397 on 14th January 2018. On the same day ETH had a market correction of about 18.5%.
Ethereum took its toll as the technology gained more clarity over Ethereum. In 2019, the largest sector in the Ethereum Defi ecosystem saw a growth in the gaming sectors. It went fully-fledged into the mainstream work, took up different projects, and was ready to lay its foundation for the upcoming year. The ETH economy saw a leap as the price doubled up at the price $667 million on the last day of the year 2019.
The present Ethereum…
- The current price of 1 ethereum is USD 210
- The Market Cap is $21.56B which has gone down by 0.72%
- The transparency volume is $688.35M.
The rise in the popularity of Ethereum: Reasons
A lot of factors contributed to the rise in the popularity of Ethereum. Though launched 5 years back the price of ethereum has seen a continued rise. People who bought it relatively cheap saw the increase in price and fair share of profitability. A sudden drop was noticed in the same year where it reached the height too. In financial terms perhaps can be labelled as Bubble.Ethereum was created to exceed the capabilities of the Bitcoin. Some of the factors that played a role in its popularity are discussed below.
ICO Choice:
Ethereum played a major role in the currency market because of its importance in the ICO’s too. Ethereum is the reason for the upcoming major ICOs that contribute to its popularity in the market. Though the ERC-20 token has a vast number of cryptocurrencies covered in their blockchain, many ICOs still would choose Ethereum as their preference than creating their cryptocurrency.
The developers:
The developers of the Ethereum blockchain saw the rise in Ethereum as a huge opportunity to experiment with the new tech in the market. Today decentralized applications and contracts are turning the world, but the cryptocurrency- Ethereum is bringing a revolution of its own!
18% of all open-source crypto developers work in the Ethereum ecosystem. Even more, Ethereum has 4x more devs than the next ecosystem, which is Bitcoin.
Most developers uses the ethereum ecosystem as it has more value than the others.
Easy Integration With various apps:
The platform of Ethereum created its base on many applications. Unlike the other big names of cryptocurrencies, Ethereum had more roles to play than its its financial transactions. Ethereum offers a stage for the local applications and the contracts too. This attracts the developers as well as investors to consider ethereum as a mainstream cryptocurrency.
Applications built on Ethereum (dapps) can do things regular apps can’t:
- Create new kinds of money and digital assets Web apps that are unstoppable and uncensorable
- Build decentralized organizations, property, or
- virtual worlds that are governed collectively
Community Interests:
The interests of big names had contributed to the rise in popularity of Ethereum. Some of the companies that had joined hands with ETH are Microsoft Corporation, Bank of New York Mellon, and the Intel Corporation. The members of the platform rose to 116 members generation a wave of excitement in the community.
Conclusion:
The market maps the price of the cryptocurrency. The two most important factors that decide the price to remain volatile are demand and supply. These both are “inversely related” to each other. The bandwagon effect is the term deciding the price of the cryptocurrency. Other factors that decide the price of ethereum or any other cryptocurrencies can be divided into internal and external factors. The internal factors include the traders and the cross of influence between different cryptocurrencies. The external factors depend upon the integration in the trade market, global application, the influence of media, and an update in the software.
