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Ethereum
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=== '''''Price''''' === '''Price of Ethereum''' Ethereum’s price history reveals an eventful ride over the years. In ETH’s early days, the coin traded below $2.00 at times. The Ethereum price chart shows ETH’s price history on Cointelegraph’s Ethereum price index. ETH traded below $15.00 per coin in early 2017 and surged all the way up to around $1,400 per ETH in January of the following year. Following that high, ETH proceeded to fall all the way back down near and below $100 at times in the subsequent months and years. The asset eventually trended back upward, surpassing the $4,000 mark in 2021. However, the post-Merge Ethereum price dropped by 55% against BTC. '''What affects the Ethereum price?''' The price of cryptocurrencies depends fundamentally on the supply and demand of the markets. Overall, there are a few significant factors that affect the sentiment of the ether market. '''Domination of Bitcoin''' Bitcoin has the most influence over the value of other cryptocurrencies. If the bitcoin price increases, the value of other cryptos tends to increase proportionally. This happens in reverse if the price of bitcoin decreases. Besides the bitcoin price changes, what also affects the Ethereum value is which coin dominates the market. In short, for years, Bitcoin has been the number one cryptocurrency in terms of market capitalization and number of active wallet addresses. But in July 2021, Ethereum, for the first time, flipped (dominated) Bitcoin by the number of daily active addresses on its network. Should the trend continue, the Ethereum price could spike. '''Ethereum is seen as a legacy coin''' The cryptocurrency market offers a selection of different assets for different investor segments. “Legacy” cryptocurrencies such as Bitcoin and Ethereum are a good fit for long-term holding. These coins carry less risk than newer, smaller tokens. Since the COVID-19-induced market crash, the volatility of both bitcoin and Ethereum has been low if we compare it to newer cryptocurrencies. In the following chart, the volatilities of Bitcoin (BTC) and Ethereum (ETH) peak in the early 2020 COVID-induced crash. Then, the volatility of both assets stays relatively low after spring 2020. In early-to-mid 2021, younger small-cap tokens showcased escalating volatility during the bull cycle and the May correction. On January 2022 Ethereum price decreased to 2,411.91 USD (2,231.38 EUR). However, in the following months, the price of Ethereum remained at an average of 2600 USD. Of course, Russia’s invasion of Ukraine had brought even more volatility to the crypto market. However, by the end of 2022, Ethereum had seen a significant price increase, with one ETH being worth 1,377 USD and 1,156 EUR. '''Platform upgrades''' If the development of Ethereum’s platform includes improvements, the price will increase to reflect the added value. And in fact, the platform has been going through a series of extensive upgrades in its platform since its creation. The upgrades were initially divided into four main stages: Frontier, Homestead, Metropolis, and Serenity. Serenity, the following stage will concentrate on improving the platform’s efficiency, speed, and scalability. Ethereum 2.0 is a significant upgrade to the already existing Ethereum blockchain. Namely, this upgrade aims to enable the network to address the bottlenecks and increase the number of transactions. The alternative names for Ethereum 2.0 are Eth2 or Serenity. Thanks to this upgrade, more financial institutions could start using Ethereum. During the shift to ETH2, the network undergoes a few hard forks. For example, the Ethereum London Hard Fork is launched in August 2021. This hard fork (or change in the blockchain) evens out the ETH network fees and limits the ETH supply. Ethereum estimates that the 2.0 network could go live by 2022 if the development is successful and goes as planned. At the same time, cautious experts say the upgrade could take years. '''Ethereum Supply & Demand''' In the second half of 2021, the Ethereum network will undergo a major change. So far, the supply of Ethereum has been unlimited — but that is set to change. After the Ethereum London Hard Fork, the ETH blockchain will burn the fees it charges from crypto users. This will create deflationary pressure on ETH. In other words, it will be more likely for ETH tokens to increase in value over time since their maximum supply became limited. '''Rise of NFT''' Non-fungible tokens (NFTs) are yet another reason for the ETH price increase. NFTs are a form of cryptocurrency. Their main feature is that instead of holding money, they contain assets like art. A non-fungible object, by contrast, has its distinct value, like a picture or a first edition book. And most of the NFTs are part of the Ethereum blockchain. The NFT market value tripled in 2020, reaching more than $250 million. Therefore, an increasing amount of trades affected the ETH value. '''DeFi explosion''' The usage of the Ethereum network is becoming even more extensive in the wake of the decentralized finance (DeFi) explosion. Many DeFi tokens are based on the Ethereum blockchain, and their users, in turn, are paying the Ethereum gas fees. Gas fees are payments made by users to compensate for the computing energy required to process and validate transactions on the Ethereum blockchain. DeFi, which aims to create an alternative financial system that is more accessible than the traditional one, is primarily built through decentralized applications (Dapps) on the Ethereum network. '''''Price: (Taken from''''' ''YahooFinance.com)''** {| class="wikitable" !'''Date''' !'''Open''' !'''High''' !'''Low''' !'''Close*''' !'''Adj. close**''' !'''Volume''' |- |31 Jul 2023 |1,448.13 |1,458.90 |1,448.76 |1,451.59 |1,451.59 |3,740,092,160 |- |30 Jul 2023 |1,459.26 |1,467.79 |1,455.97 |1,464.32 |1,464.32 |1,944,029,906 |- |29 Jul 2023 |1,454.39 |1,461.51 |1,452.40 |1,459.40 |1,459.40 |2,958,875,296 |- |28 Jul 2023 |1,448.19 |1,453.57 |1,450.06 |1,454.12 |1,454.12 |3,354,265,245 |- |27 Jul 2023 |1,440.84 |1,457.93 |1,433.01 |1,448.25 |1,448.25 |4,472,443,770 |- |26 Jul 2023 |1,443.95 |1,455.07 |1,439.23 |1,440.87 |1,440.87 |3,229,135,506 |- |25 Jul 2023 |1,469.70 |1,469.14 |1,432.45 |1,443.93 |1,443.93 |4,951,796,259 |- |24 Jul 2023 |1,451.54 |1,481.22 |1,446.46 |1,470.00 |1,470.00 |3,486,393,895 |- |23 Jul 2023 |1,471.65 |1,475.82 |1,442.98 |1,450.62 |1,450.62 |3,190,188,291 |- |22 Jul 2023 |1,469.45 |1,481.44 |1,467.58 |1,471.75 |1,471.75 |3,631,112,898 |- |21 Jul 2023 |1,460.18 |1,491.72 |1,462.71 |1,468.97 |1,468.97 |5,722,811,914 |} '''Valuation''' The total value of all cryptocurrencies is $1.23 trillion, in July 2023<ref>https://www.coingecko.com/en/global-charts</ref>. At the same time, ETH has a total value of $222.4 billion<ref name=":1"><nowiki>https://www.coinbase.com/price/ethereum</nowiki></ref>, which is approximately 18% of the market. In the near future, this percentage will continuously increase because ETH has an infinite supply, while Bitcoin is approaching its total supply limit. The initial release price of ETH is '''$0.31''' per token in 2015, and it was under $1 for the major part of 2015. But by March 2016 Ether crossed the $10 mark. By 2017, ETH had gained popularity and reached $100 in May 2017. By the end of 2017, ETH had reached a value of $774.69 and within the first week of 2018, it crossed the $1000 mark. After the cryptocurrency crash in 2018, ETH was reduced to under just $100. From 2019 to 2021, ETH once again continued to rally and reached its highest price of '''$4,815''' on November 9, 2021. During the first half of 2022, ETH's price experienced a significant drop, but since then, it has been consistently hovering around $2000 up until the current date in July 2023<ref>https://www.globaldata.com/data-insights/financial-services/ethereums-price-history/</ref>. [[File:Ethpricenew.PNG|ETH's price history 2015-2023. Source: Statista<ref>https://www.statista.com/statistics/806453/price-of-ethereum/</ref>]] '''Ethereum price predictions''' Everybody wants to hear price predictions for their favorite cryptocurrencies. Just like bitcoin, Ethereum has its maximalist fans who make optimistic price predictions. Like bitcoin, Ethereum also has its pessimistic critics. By July 2021, Ethereum has outperformed all cryptocurrencies, including BTC, in the first six months of 2021, in terms of growth and trading volume. As a result, the Finder’s panel of crypto experts went as far as predicting that ETH price is likely to outperform BTC by the end of 2021 which didn’t happen. According to Finder’s analysts in 2023, Ethereum’s price is expected to peak in at $2,474 per token and conclude the year at $2,184 per unit. Other expert predictions suggest that the price of Ethereum could be between $1,768.09 and $2,652.14 by the end of 2023. Meanwhile, some experts and industry analysts believe that Ethereum will come close to the $4,000 mark by the end of 2023. We will have to wait and see.
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