By Eurasia Business News, May 3, 2021
Ethereum is a blockchain protocol designed in 2015 by Vitalik Buterin, a Russian-Canadian developer. Picture : Ethereum coin – Photo credits : Pexels.
Ethereum tops $ 3000 for the first time and its price continues to rise as investors and traders eye on Bitcoin performance, following the listing of Coinbase Global Inc., the famous cryptocurrency exchange, on the the Nasdaq on Wednesday April 14.
On February 8, the price of Ethereum exceeded $ 1.7 thousand. One of the factors behind this price jump was then the launch of Ethereum futures contracts on the Chicago Mercantile Exchange CME. The new product was presented in early February. CME is a US-registered designated contract market (DCM) and derivatives clearing organization (DCO).
Usually, the price of altcoins follows the dynamics of Bitcoin. However, this trend was broken last month, resulting in a sharp decline in the share of the first cryptocurrency on the market to a three-year low of 46%. While Ethereum hit its all-time high, Bitcoin was trading well below its peak. On May 3 the Bitcoin price is $ 57.9 thousand, while on April 14 it reached a record $ 64.8 thousand.
Ethereum, the second-largest cryptocurrency, overall has risen for nine straight days, its longest winning streak since the bull market of late 2017 and early 2018.
Earlier, the American bank JPMorgan named three reasons why Ethereum would be superior to Bitcoin. The company’s analysts pointed to the altcoin’s more stable liquidity, less dependence on the derivatives market, and higher transaction speed.
What is Ethereum ?
Ethereum is a blockchain protocol designed by Vitalik Buterin, a Russian-Canadian developer which entered in 2017 the top 10 of the rating “40 most influential young people under 40” according to Fortune magazine. This rise of the Ethereum now crossing $ 3,200 made its creator Vitalik Buterin to become a billionaire at the age of 27.
Blockchain is a technology that allows information to be stored and transmitted transparently, securely and without a central control body.
Launched in 2015, Ethereum, the second blockchain in terms of valuation after Bitcoin, allows the development of decentralized applications, called Dapps. It is different from Bitcoin, which is only focused on peer-to-peer payment. On exchange platforms, Ethereum is designated by the acronym “ETH”. Ether should not be confused with Ether Classic (ETC), which is a derivative of the original created following a hard fork, in 2016.
Ethereum capitalization is now $ 366 billion. It is the largest altcoin, it occupies over 15% of the crypto market. The total assessment of the digital money sphere is $ 2.3 trillion, of which $ 1.1 trillion is the capitalization of bitcoin.
Read also : Bitcoin crosses $ 30,000 for the first time
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