The cryptocurrency Ethereum is at its apex. In public cryptocurrency networks, it is the second-largest in terms of market value and daily trading volume, and it has experienced rapid growth in the last year. Presently biggest competitor of Ethereum is Bitcoin. But when Tesla Chief Elon Musk shifted his stand on Bitcoin and China reinforced its cryptocurrency laws, Bitcoin experience a quick fall in May changing the spotlight to Ethereum.
Critics and investors even predict that Ether may take over Bitcoin in the future. Ethereum has increased by over 900 percent in the last year, while Bitcoin has only increased by 275 percent. Let us see some of the reasons behind the surge of Ethereum.
Early maturation of Bitcoin prices:
Bitcoin prices were at a rise even when stock prices witnessed a record dive due to the pandemic. Many investors and businessmen started buying cryptocurrency because the global crypto market was on a constant rise from March 2020. Most of them invested in Bitcoin since it was the largest and best-known cryptocurrency. But after one year, the Bitcoin prices already got matured and reached over a trillion-dollar market cap and investors are looking for the next best crypt Ethereum.
Approval by Tech Powerhouses:
The Crypto market grew fast when large organizations like Square and Tesla invested millions into it. Many notable personalities like Elon Musk, Mark Cuban, and Jack Dorsey, among others, have utilized their social media platforms to inform their followers about their enthusiasm for cryptocurrency and to encourage potential purchasers to invest. This enticed new investors to enter the crypto market, resulting in a shift in Ethereum’s market conditions.
The idea behind Ethereum:
Ethereum was designed by Vitalik Buterin to eliminate all the limitations of Bitcoin. Ethereum is built to function with a wide range of applications, from social networks to large companies. Ethereum has been picked above other cryptocurrencies because it allows for more applications to be developed on it. Ethereum’s proof-of-stake algorithm can aid in lowering transaction costs and electricity consumption. Also, the investors can earn interest from Ethereum transactions.
Ethereum is affordable:
Ethereum is cheaper than Bitcoin which is one of the main reasons for attracting many investors. With strengthening crypto trading investors are looking for trustable cryptos. Ethereum provides many provisions to its buyers. For investors who look for something that ensures their gain, right now Ethereum is flourishing.