Ethereum is a general-purpose block-chain platform, operating system, and decentralized application network. It is the second-largest cryptocurrency platform with 45 billion dollars of capitalization, behind Bitcoin. Ethers supply is not regulated like that of bitcoin and its supply schedule, often described as a minimum necessary to secure the network, is controlled by members of Ethereum’s community
Ethereum was created as a platform that gives the ability to the users to build programs without the involvement of middlemen, including central servers to store information that makes them less exposed to manipulations of middlemen and authorities. Ethereum has almost doubled in values so far this year and the number of active Ethereum holders is growing at approximately twice the rate of bitcoins. This however makes the network much more costly to use.
The rise in the price of Ethereum means that majority of the Ethereum holders are in profit. The cryptocurrency has risen from $110 in March 2020, following the “Black Thursday” market crash, to reach a 2 year high of €413 on Saturday, August 1. At the time of writing, ETH was trading at $393. Few people who bought ETH during its all-time high of over $1000, in January 2018, are still possessing them. Most of the Ethereum were either bought up at the lows or has been held since the beginning without being sold.
The Ethereum had celebrated its 5th anniversary on Friday,31st July, with many in the public predicting the project’s outlook looks increasingly positive.
Decentralized finance is found to be one of the biggest drivers of Ethereum growth in recent months, with DeFi applications accounting for nearly 97 percent of all decentralized app volume on Ethereal. The benefit of ‘Yield Farming’, lending protocols that offer users easy access to money and high-interest rates as well as other non-custodian financial products, so the market capital for decentralized finance tokens hosted on Ethereum hit $8 billion last week. The total value locked up in DeFi smart contracts is nowadays over $4 billion. The block-chain platform is also expecting a major upgrade, Ethereum 2.0 which is designed to increase its scalability in the future. The idea for Ethereum 2.0 introduces a proof – of – stake method of blockchain governance. The proof of stake block-chains lets users to lock up a bunch of their coins and get paid for assisting to secure the network. When complete Ethereum 2.0 is likely to expand the network’s transaction speed to 100,000 transactions per second (TPS).
The Ethereum success right now appears to be the platform’s inflating transaction price.