Ethereum is ready for further growth. This is evidenced by the interest of institutional clients of the Northern Trust, said DTAP Capital founder Dan Tapiero.
On Tuesday, January 19, the price of the second-highest cryptocurrency exceeded the mark of $1400, setting a new historical high. We can also remember that, on January 10, the price of Ethereum overcame $1300, setting another maximum. It should be said that on different exchanges, the historical maximum of Ethereum is different.
According to Messari, at the time of writing the asset was trading only 7.27% below the historical high. Earlier, Messari analysts predicted an increase in the interest of institutional investors in Ethereum.
The Ethereum rally, which began in the autumn, has led to an increase in demand for coin mining equipment. Since the end of 2020, the cost of video cards has increased by an average of $100.
According to some media reports, the market is already experiencing a shortage of certain models. Nvidia has already announced the possible resumption of the release of the GPU for mining.
Crypto trading is growing - so is Ethereum
Ethereum’s progress quickly showed itself in crypto trading. This field is still developing, but news like this is always an incentive for traders to engage more in the trading process. According to statistics, in the past month using trading platforms like cTrader for crypto trading was very prevalent and this trend shows no signs of slowing down, as we see a spike in crypto trading.
As trading is gaining a foothold, more and more brokers see a wave of novice traders. According to the analysis from Axiory, which is a well-known Forex broker, such trends are anticipated and the same can be seen in Forex trading as well. Usually, when the price of a particular currency shows a sharp rise or decline almost always traders are on the alert to make use of it.
Other cryptocurrencies also rise
Capitalization of the cryptocurrency market reached $1.128 trillion. Bitcoin Cash and Bitcoin SV forks have also shown a sharp increase in the last 24 hours. Over the past seven days, they have increased by 74% and 79% respectively.
The leader of growth in seven days is Stellar (XLM) - 148%. Cryptocurrency has grown amid incorrect headlines in some Western media that the Ukrainian government has chosen this platform to create the digital currency of the central bank (OTC:CBDC). The statement was not true, though.
Bitcoin vs Ethereum
Investment strategist Lyn Alden conducted an economic analysis of Bitcoin and Ethereum, which resulted in the second-highest capitalization of the cryptocurrency as an "experimental product".
According to the expert, in the long term, Ethereum is unlikely to become an economically sustainable project because of its incompleteness. The regulator may make it more difficult to launch applications based on this blockchain.
According to Alden, in the next five years, when the Ethereum 2.0 update is fully launched, this asset can be called a completed project like Bitcoin. But now it's just an experiment.
Alden noted the big "cultural differences" between the two main digital assets. The issue of Bitcoin is limited to 21 million, and Ethereum is characterized by "arbitrary" monetary policy.
According to her, the first cryptocurrency has great growth potential, despite the high volatility. Against the background of inflation of fiat currencies, digital gold will continue to rise in price, the expert believes.
Bitcoin does not demolish everything in its path, as many altcoins. It is moving slowly but in the right direction. The more ideas and innovations appear in the digital asset industry, the more developers of the first cryptocurrency have to improve the protocol and ecosystem.
What can we expect from Ethereum in 2021?
Ethereum is a revolutionary cryptocurrency that appeared in 2015.
Since the beginning of its development, Ethereum has been considered as a Technology "Bitcoin 2.0". In many ways, all the ideas laid down in Bitcoin can not be implemented because of too simple code. It also won't be able to secure the right number of transactions in the world, unlike Ethereum. It has other undeniable advantages.
Ethereum is not just another crypto - it is a decentralized platform for creating new services based on Blockchain. It's basically a tool. The ether is just the internal currency of this platform.
The huge increase in the number of transactions suggests that Ethereum is actually used by users. Especially to raise funds in the ICO. By 2020, most new cryptocurrencies are emerging as a result of IEO.
Ethereum price forecast
The forecast for the Ethereum rate in 2021 is $1,000-2000, by 2022 $2000-4,000. Many experts agree on this figure. However, after 2018-2019 and a strong collapse, there were also negative predictions about further weakening.
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