Ethereum has hit an all time high today of $2,720 as of writing this while most other cryptos are steady or slowly losing.
Why is this?
It all comes down to news and speculation about what might happen.
Ethereum is now 1/3 the market cap of Bitcoin and is starting to close that gap of the infamous flippening. Could it happen? YES why? Bitcoin really has no use cases besides an entry point into crypto and that the name Bitcoin is often times the first thing that comes to mind when you talk to someone about crypto. However that is starting to wear off as more and more use cases come forward about Ethereum and other crypto.
Ethereum over the years has built up a massive amount of apps and platforms that continue to support it even with higher fees. However some side chains are starting to pick up the slack but also a lot of platforms are getting smart about minting NFTs and when and how often they hit the block chain which is providing options to continue to use Ethereum even with high fees.
Ethereum will be going through a few hard forks this year many of which will start reducing/burning the supply of Ethereum as it's used in transactions. This will decrease the amount of Ethereum there is to go around. What I always love about the crypto industry is that the market reacts on the news and sells after it actually happens.
Just like every bitcoin halving the price sky rockets about 6 months before it happens and then sells off once it does happen.
Ethereum however might be a unique story and one I am interested to see how it plays out.
In my opinion the price will continue to climb as we get closer and closer to the days when Ethereum supply gets reduced. However that is still months away and during that time production and fees will continue on like normal.
Not only a reduction is supply but Ethereum will be going to a POS (Proof of stake) system at some point. Any POS
Ethereum constantly is in headlines for NFT sales, updates, mining, stocks and more. One of the most recent is the very real possibility of Ethereum opening up to European investment banks to launch a digital bond.
At the moments the talks of doing this would bring in a bond supply of $200 million which is a drop in the bucket for the market cap of 314 Billion. However it could pave the way for more money to flow in, in terms of bonds. To me this almost feels like a way for banks to try and get money as DeFi has recently caused some stress for banks as of late as more and more people are realizing how pointless and honestly how shady and corrupt they are to their customers.
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There is a lot of excitement surrounding Ethereum. I wonder how soon they will solve the situation with the fees.
That is going to make a difference in my opinion.
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If they can truly get it wrapped up and under better fee terms by years end I think they will be sitting good still. Sooner the better though of course. Curious how the august hard fork will turn out.
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Yes the hard fork for them is going to be interesting. It will be a challenge as we know. As interesting is the politics. Will we end up seeing two chains as the miners decide they want to hold onto what they have?
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Those fees are a killer, I agree with you.
I hope they solve the issue soon with these fees because wow... Ethereum is looking to be an exclusive club if fees continue to grow.
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Ethereum is a great opportunity, and hopefully those hard forks won't be a destructive factor in continued growth.
I'm pretty much better long term even at these all time high prices that by end of the year into the start of the next year we should be seeing 10k+ per ethereum. $2,800 into $10,000 in those few short months is a seriously big return. If everything goes decently well I believe we could see it.
That would be really awesome 😀
Yay! 🤗
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Ethereum has established its brand over time while Bitcoin didn't really have to do anything about it since it's quite famous among the masses for the same reason you mentioned in the post i.e. it's an entry point for most people.
The good thing is that constant development is happening with ETH and people have at least something to speculate on. While everyone does that, I am HODLing mine. :D Even I am excited to see how this will play out when all those HFs happen this year. 🤞🤞
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I see transaction fees as the only drawback when it comes to ethereum. If that problem can be solved, ETH has the potential. But there are also competitive blockchains available that are taking over the NFT ecosystem or the smart contracts with their cheap transaction rates.
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I think this line was cut off.
I don't know what to think of banks using crypto to dump their bonds. I guess it would mean they have less control but its propping up the old system.
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In one sense this is quite annoying as I dumped the majority of my ETH due to the ludicrous gas fees escapade. It is very bullish recently compared to the rest. I still have a couple hanging around in my Ledger, not working for me.
I think Bitcoin's function as a store of value, because of widest acceptance, should be honored, but otherwise: agreed! :)
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