Why is the price of Ether being so high (why has Ether currency skyrocketed)

08/05/2023 19:40 • AI & Tech Insights • 48 views

Why is Ether priced so high? Editor’s note: This article is from Cointegraph Chinese (ID: Cointegraph China), authored by SAMUELHAIG, and reprinted by Daily Planet with authorization

In the past 24 hours, the price of Ethereum has risen by more than 15%. Since 2017, the Cryptocurrency has been the preferred investment asset for mainstream investors and institutional traders, especially due to the soaring price of Bitcoin in recent months

Although the price of Ethereum has soared many times, it is not the focus of all investors because people are increasingly interested in it. Why is the price of Ethereum so high? Since ETH2.0 is in progress, ETH must be cheaper than BTC and other Cryptocurrency to achieve this goal

However, with the continuous growth of Ethereum and the emergence of DeFi protocol, the price of ETH is also rising. This may indicate that with the development of the DeFi agreement, the value of Ethereum will continue to increase

However, for Ethereum, the current market value only accounts for less than 1% of the total circulation supply of Bitcoin, and this situation is still very rare, but now it is facing a major challenge – when Bitcoin reaches $1, will people use these tokens on Ethereum? Although Ethereum is a highly secure, scalable and easy to use digital asset, there are huge risks in the blockchain field because many people buy these tokens as speculative tools According to encryption research firm Messari, as of the end of May 2020, over $200 million in ETHs had never been moved or transferred to non exchange wallets

Unlike Bitcoin, Ethereum is a decentralized system that provides developers with the ability to run smart contracts seamlessly. Applications built on Ethereum can access various functions and create functional applications with unlimited throughput; In addition, it also supports the NFT market and other new use cases; There are also some functions that can be used to create decentralized social networks

One of the main advantages of Ethereum is that Ethereum’s consensus mechanism is open and transparent, and anyone can freely verify its data and its status. Ethereum provides power by enabling developers to easily perform complex work while maintaining security

Ethereum is generated by the PoW algorithm, and miners can obtain rewards through proof of work to improve their performance. For example, it will take a long time for Ethereum to dig out blocks. If more time and resources are needed to handle a large number of computing tasks, the difficulty may increase

The core design concept of Ethereum is that “everyone has their own private key”, rather than storing all the information they have like traditional bank accounts. If you want to know the information you want, you don’t need to trust the identity of this person. “

Why has Ethereum skyrocketed

After last year’s ups and downs, why has Ethereum skyrocketed? Since the beginning of the year, the increase has exceeded 100%. There are many reasons: firstly, the value support of Bitcoin is BTC (Bitcoin), secondly, ETH2.0 is in progress, and thirdly, the development speed of blockchain technology itself is very fast. Why can Ethereum grow so fast? 1、 The halving of Bitcoin leads to the soaring price of Ethercoin

Ethercoin is a decentralized Electronic cash system that uses smart contracts to support Cryptocurrency payments and transactions. It can convert traditional bank transfer records into encrypted assets and transfer them to digital wallets; Another is its stability mechanism – POS mechanism, which generates block rewards to participants through POW mining; Secondly, there is the “voting” stage in the EOS super node election process, which involves the emergence of a large number of new consensus algorithm validators or the issuance of new tokens on the network So when the price of Bitcoin rises, Ethereum will be sought after by funds: Firstly, because investors are optimistic about its development trends and potential. Secondly, due to investors’ high trust in the project, they are more willing to believe that the project team can hold their shares for the long term. For those who invest in Bitcoin, this confidence comes from their beliefs The third point is how high are people’s expectations for the future of ETH? Why does ETH have such a frenzy? 2、 DeFi is driving the Ethereum bull market. Currently, there are already many DeFi projects in the market that are getting excited. For example, MakerDAO’s Dai is considered one of the largest application scenarios for Ethereum. As more and more mainstream platforms gradually launch the protocol, many traditional financial institutions are also trying to enter this field. The main reason for this is that the application of DeFi has made Ethereum an investment choice for the public.

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Why is the price of Ether being so high (why has Ether currency skyrocketed)

Why has Ethereum skyrocketed

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