Ethereum had faced considerable losses in the second half of 2017, declining its market capitalization to the level of $40 billion in early December. Since then, its price and the market capitalization bounced back sharply. The rally in its price was supported by the wide acceptance of ethereum in global financial markets.
Mr Nerayoff said: “What you’re seeing with ethereum is exponential increase in the number of projects — there are billions of dollars being poured into the ecosystem right now — maybe 10 times more projects this year than last year, which could easily lead to a doubling, probably a tripling in price by the end of the year.”
Ethereum also stood taller this week despite several negative reports that were looming over the other cryptocurrencies, thanks to trader’s strong confidence in Ethereum’s real world use. Its price gained more than 89% in the past two weeks, adding to more than 13,000% increase it experienced last year.
Its price hit the highest level this week when several other cryptocurrencies were suffering major losses due to the threat of the potential ban from South Korea. On Wednesday, its price hit a record high of $1,417.38, supported by a positive comment from its co-founder. Steven Nerayoff said the Ethereum blockchain has the potential to trigger “flippening” in 2018, allowing it to go beyond bitcoin.
Ethereum is currently trading around $1,234. Its market capitalization is hovering around $119 billion, the second largest after the bitcoin.
Although Ethereum is supported by a similar blockchain technology used for bitcoin, the technology is modestly diverse in terms of how it works; smart contracts. Its blockchain technology, which records transactions, has the ability to store information, including computer programmes and contracts.
Several large companies are testing Ethereum blockchain technology; leading investors to believe the real world use the technology. Recently, a few major companies formed a group named the ‘Enterprise Ethereum Alliance’. This group includes big companies such as JP Morgan and Microsoft. Enterprise Ethereum Alliance plans to develop some applications with the help of Ethereum blockchain.
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