Ethereum’s price kept growing in February and at one point it reached the record high with a price of $1,800. After Bitcoin, this is the most popular cryptocurrency and it’s time to see what events caused this rise.
We are all familiar with recent events and how Elon Musk triggered the rise of Bitcoin. This cryptocurrency reached an all-time high but rise affected Ethereum also. If you are not familiar with Ethereum history, this cryptocurrency was proposed in 2013 by programmer Vitalik Buterin. It’s different from Bitcoin since this is not a singular form of digital money where users can send, receive, and hold only one currency. On the contrary, we are talking about a smart contract platform that allows users to create numerous different digital ledgers and it can also be used to create additional cryptocurrencies that run on top of its blockchain.
This means that Ethereum is not just another cryptocurrency that wants to have the same success as Bitcoin. This is a digital currency that has a completely different path from Bitcoin and that’s what makes it interesting to traders.
Its performance during the years was very interesting. Although past performance is not necessarily an indicator of future results, we still want to reflect on it and familiarize you a bit more with this digital currency. In January 2016, the Ethereum protocol was able to process around 25 transactions per second. Compared to Bitcoin, that’s an excellent achievement, but compared to Visa, for example, that’s very low (Visa payment platform is able to process 45,000 payments per second). Of course, that didn’t stop the founder of Ethereum to work on updates and by the end of 2016, this cryptocurrency reached one milestone. It exceeded one million transactions in a single day.
As you can see, there is a reason why this became such a popular digital currency and why so many people are comparing it to Bitcoin. But, since those two are completely different, how could the rise of Bitcoin impact the rise of Ethereum? It’s simple and we will walk you through it right now.
How did the Rise happen?
A rise of specific cryptocurrency never happens due to one reason. Different factors create a perfect combination that has an impact on the rise. In this case, those factors vary from Elon Musk’s decision to invest $1.5 billion in Bitcoin to the launch of CME futures a day before that.
The second-largest cryptocurrency had a record high during European trading hours ($1,824.59) and it surpassed its previous price of $1,761.35. As a matter of fact, Ethereum more than doubled this year which means that it outperformed Bitcoins rise of 58%. Many people believe that this rise has a direct connection to the recent GameStop saga. The current crypto market is most certainly distracted by the GameStop situation and if you are not familiar with it, let us tell you the most important thing that can have an impact on your future trading.
A group of Reddit users created a board called “Wall Street Bets” (WSB) and managed to make GameStop shares (NYSE: GME) break all the records. All of that just to squeeze hedge funds that were betting against the video game retailer and its stock.
So, once we combine Elon Musk’s interest in digital currency and the power of Reddit users, it’s more than clear how Ethereum managed to reach the record high.
At the moment of writing, Ethereum’s price is $1,810.19 which means this cryptocurrency remained stable and without any downfalls. It’s safe to say that from that moment until now, Ethereum is in the spotlight and all eyes are on it. As you could see in this article, there is a solid reason for that. This is a second-largest cryptocurrency and investors are aware of that.
So, if Ethereum became your area of interest recently, we suggest you open an account and add this cryptocurrency to your trading portfolio. Nobody can predict the future, but for now, adding Ethereum seems like a wise decision.