By Eurasia Business News, September 4, 2021
Ethereum, the second largest cryptocurrency after Bitcoin, hit $ 4,000 on Friday September 3, the first time since May 15. The recent demand for non-fungible tokens (NFTs) would be a driver of this growth.
On September 4, Ethereum was worth $ 3,876.06 at 10:33 pm Paris time.
The last wave of growth for Ethereum started on July 20 from $ 1,700 .Since then, the value of the cryptocurrency has increased by 135%. Ethereum is moving towards an all-time high of $ 4,379, which was set on May 12.
On August 5, the London Ethereum Network update was released, which completely changed the mechanism for calculating transaction fees, reducing them for miners and increasing the capacity of the Ethereum platform.
What is NFT ?
Non-fongible tokens (NFTs) are digital assets issued by a blockchain. non-fungible means that each unit (token) is unique, and cannot be reproduced. Unlike bitcoins which are fungible, these particular units of currency are unique.
People understood that a unique digital object like a NFT can have significant monetary value, just like a work of art, because of its uniqueness. This is why NFTs are developing in the field of digital art, video games and sport. Artists and musicians use NFTs to sell their work.
In March 2021 Christie’s auction house sold its first piece of NFT-linked digital art, which commanded a winning bid of $69 million.
NFTs mostly depend on the platform where they are created. In this case, we can focus on Ethereum, which brings together the greatest number of these crypto artistic assets. The growth of the NFTs market in 2021 is the main driver of the growing price of Ethereum.
NFTs are bought and traded like any other Ethereum-based cryptocurrency.
Read also : Bitcoin crosses $ 30,000 for the first time
What is Blockchain ?
Blockchain is a technology making it possible to store and exchange value on the internet without a centralized intermediary. A blockchain constitutes a database which contains the history of all the exchanges carried out between its users since its creation. This database is secure and distributed. The use of blockchain has many advantages : the speed of the transactions, the security of the system and the productivity gains.
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