Like Dogecoin, the Ethereum cryptocurrency has been in the news a lot in recent days. This week has been particularly eventful for Ethereum.
On Monday 3 May, it was calculated that, since the start of the year, its value has increased fourfold and now exceeds $3,000. Not without consequences, since this performance has even made the creator of Ethereum a billionaire.
From that moment on, analyses and forecasts began to multiply. Estimates of the price of Ethereum abound, with some specialists anticipating an extraordinary rise in the token’s price. According to them, the token could reach a price of $10,000, or around €8,300, by the end of 2021. In the long term, other analysts predict that Ethereum will exceed $25,000 (around €20,752).
Then there’s the latest big news for Ethereum, which came yesterday, Thursday 5 May 2021. For the first time, its option volume has beaten that of Bitcoin, the world’s leading cryptocurrency. It’s historic!
As you can see, Ether is a very promising asset, at the heart of the crypto world.
Ethereum price
Ethereum price chart
ethereum price
Source: CoinMarketCap
Ethereum price trend
Ethereum has great potential because its price fluctuates constantly. That’s why investing in this token is a good decision.
The value of Ethereum has been rising in recent days, attracting all kinds of players: companies, international institutions, financial institutions, etc.
It was really from December 2020 that the token’s value rose drastically. With its price reaching €478.64 at the end of December, Ethereum was worth €2,870.445 on 6 May 2021. This is its highest value ever.
See the price of other cryptocurrencies.
Why has the Ethereum price risen so much?
There are several reasons for this impressive rise in the price of Ethereum.
The price of Bitcoin: like many cryptocurrencies, Ethereum tracks the price of Bitcoin. The price of Bitcoin has also risen considerably in recent months.
Ethereum software update: The token team has recently updated its services. It is also planning to launch ETH 2.0, which will improve the quality of transactions. As a result, transactions will be faster and transaction fees lower.
A major move towards decentralised finance: DeFi (or decentralised finance) is becoming increasingly popular. Transactions outside the traditional banking circuit are on the increase. As a result, investors are putting more and more faith in cryptocurrencies. At the same time, Ethereum is proposing the development of applications specialising in DeFi. Ether (ETH) is the world’s No. 2 crypto, making it all the more attractive.
What is Ethereum?
Ethereum (ETH) is one of the most popular cryptocurrencies. It is ranked as the world’s 2nd most popular cryptocurrency. Created by the young developer Vitalik Buterin, Ethereum, like Bitcoin, uses blockchain technology. The system used by Ethereum offers the possibility of concluding “Smart Contracts”. This is one of the major differences between Bitcoin and Ethereum. The purpose of these smart contracts is to carry out transactions that are not controlled by third parties. Similarly, Ethereum can be used to mine, trade or diversify your portfolio by storing assets.
Bitcoin in brief
Bitcoin price
bitcoin price
Source: CoinMarketCap
Bitcoin in a nutshell
Bitcoin was created in 2008 by Satoshi Nakamoto. The term Bitcoin covers both the cryptocurrency and the payment system. The Bitcoin system has no intermediaries and relies on blockchain technology to ensure instant transactions. Bitcoins can also be mined, and anyone can use the token. Click here to find out more about Bitcoin.
Ethereum is ahead of Bitcoin in terms of option volume. What does this mean?
Ethereum has been one of the most successful cryptocurrencies since the start of 2021. Bitcoin still tops the league table, but Ethereum has overtaken it in other respects. In concrete terms, the volume of options on Ether has surpassed that of Bitcoin. In fact, the volume of options on Ether reached $1.32 billion, compared with $879 million for Bitcoin. This reversal recorded by the biggest derivatives exchange companies such as Deribit, OKEx, Huobi and bit.com is a major first. The Deribit platform even tweeted earlier this week:
“We have no opinion on a $ETH – BTC flippage, but our ETH option volume tipped $BTC option volume for the first time, 1.4 billion notional dollars” reveals Coin24.
This very positive trend for Ether is reflected in the asset’s market capitalisation. It is now worth $350 billion. At the same time, the price of Bitcoin has fallen by 3%.
Ethereum vs Bitcoin: who will win the battle?
Bitcoin has long dominated the cryptocurrency market. The asset’s approach to its historical peak has allowed the best-performing altcoins to catch up with Bitcoin. So demand may be changing, at least for the time being. According to an article on the subject in Capital, a “double dip” in Ether against Bitcoin has emerged, accentuating an “outperformance” of the world’s 2nd-largest cryptocurrency over Bitcoin 1.
But it should not be forgotten that Bitcoin enjoys a high profile, with over a decade of hegemony. Surprisingly efficient and simple, Bitcoin continues to win over investors. On top of that, investors have confidence in this cryptocurrency, so that even the most reticent individuals in the cryptocurrency world are beginning to take an interest in Bitcoin. This is not yet entirely the case for Ethereum, for example.
Will this upheaval last? Ethereum has what it takes to become the world’s leading cryptocurrency. But bearing in mind Bitcoin’s performance, nothing is less certain.
