If there’s one thing we know about the world of cryptocurrency or bitcoin trading, it’s that it is a dynamic world that always surprises us. For a long while now, it was the OG crypto – Bitcoin – which ruled the roost. But if current trends are to be given their due, you’ll see there is a new victor in town.
The second-most popular crypto becomes everyone’s first choice for bitcoin trading
Ether (ETH) has for long been the second-most favored cryptocurrency for bitcoin trading. The reason for that is simple. Not only is Ether a high-value cryptocurrency, but the Ethereum network itself is a powerful technology. It allows users to run computations and complex financial operations, in addition to mining Ether currency.
Right from transferring funds from one account to another to helping Ethereum users get loans or purchase NFTs, the Ethereum network assists in numerous ways. These multi-functional benefits of Ethereum have made it slowly overtake every other blockchain. Since Ether is the token mined, sold and processed in Ethereum, it has gained a lot of traction in the world of bitcoin trading today.
Dramatic increase in ETH value over 5 months
Ether has been performing tremendously well in the past 5 months. Let’s take a look at the trading ranges as on the 1st of every month.
- On December 1st 2020, ETH had an open range of USD 605.4238. The high was at USD 757.6891 and low was USD 530.9076 closing at USD 738.9119.
- 2021 started off strong for ETH, with an opening range at USD 738.9687 on January 1st. The high was at USD 1,474.8224, low was at USD 716.9192 and closing range of ETH for the USD 1,372.8097.
- February 1st 2021 opened at USD 1,372.7163, with a high range of USD 2,036.8428 and low range of USD 1,271.9054. It finally closed at USD 1,429.4233.
- March 1st 2021 saw a forward jump compared to the previous month, with an open range at USD 1,429.4233. However, the highest range for the day was lower than February’s rate, at USD 1,942.6758. The low range was USD 1,294.7925. But by closing time, ETH was again valued high at USD 1,939.6343.
- April started off strong with the 1st of April 2021 recording an open range of USD 1,940.1042. The day closed with an ETH value of USD 2,459.5007, with the range between USD 1,294.7925 and USD 2,545.7908.
As of writing on April 20th 2021, ETH is valued at USD 2,122.73.
A bull run in the making
As seen by the values above, it is clear that Ether and Ethereum are on the winning track. So far, ETH’s bull run has lasted for almost half the year. The sudden and dramatic way in which ETH prices have risen during bitcoin trading, certainly makes us suspect that this bull run might continue for a while longer.
But is this mere guesswork or educated speculation? Let’s see.
Bitcoin’s value – although slow- is increasing every day. But bitcoin is still only 730% over the value of what it had been 12 months ago. In comparison, Ether has seen a staggering jump of over 1290% compared to is 2020 value. In 2021 alone, ETH has gained over 159.9% from January to April.
One of the reasons for ETH’s sudden success, many experts believe, is the Law of Large Numbers. Bitcoin – which has been in the market a lot longer and is in use by more people – needs a lot more work to grow in value than ETH. In comparison, Ether – which is the relatively new kid on the block – will find it easier to grow quicker.
As ETH grows, there is bound to be some resistance that will emerge over the next few months or years. But what makes ETH still a very safe and profitable investment is that it is considered by many to be an excellent inflation hedge.
While ETH doesn’t have a hard cap of 21 million tokens as bitcoin, it does have a fixed issuance schedule. For every block created on the network, Ethereum releases two ETH tokens. This makes ETH a safe investment that doesn’t suffer from the same vulnerabilities as fiat currencies.
Some experts have gone as far as to predict that in a few months, we may see ETH go up in value, up to a whopping $7000 even! This is mostly because of the recent launch of Ethereum 2.0 (aka “Serenity”), which has upgraded the blockchain and infused a greater number of functionalities into the network. One of these functionalities is Shard Chains, which split up the blockchain and divide the various data processing activities amongst various nodes. This allows for consecutive processing of operations, which leads to better throughput, faster scalability and higher security.
Currently, Phase 1 of theEthereum 2.0 rollout is taking place and it will take at least the entire year to complete. Phase 2 is slated to be released in 2arly-to-mid 2022. Users who choose to become validators on Ethereum 2.0 will be rewarded for staking.
Even billionaire Mark Cuban has expressed his belief that the emergence of Ethereum 2.0 – which will truly make Ethereum a store of value – will dwarf bitcoin and other currencies. Given that ETH will continue to be the only used currency on Ethereum 2.0, it will certainly have immense value in bitcoin trading for the upcoming years.
For more information about ETH performance, visit iForex.