Ethereum’s rise in the Crypto Market
Ether (ETH), is the currency of Ethereum. It is also the second-largest Cryptocurrency and the largest Altcoin, just after Bitcoin as per the market cap. Ethereum, Bitcoin, and other Altcoins can be traded on trading platforms like Bitcoin Era, which guarantees a profit to its users through its automated trading software. Here is the history of Ethereum and its rise in the Cryptocurrency market.
Ethereum: What Is It?
Ethereum uses blockchain technology to make Smart Contracts, Decentralized Applications and facilitate trading in Cryptocurrency. Its native Cryptocurrency is Ether (ETH), and it is aggressively growing in the market, giving rise to speculations of it overtaking Bitcoin. Ethereum’s Blockchain technology has a distributed nature that makes it highly secure and thus provides value to ETH. The Smart Contracts and Decentralized Applications (dApps) facilitate Decentralized Finance (DeFi), giving Ethereum value. The Blockchain technology of Ethereum has a decentralized nature making it safe. Any changes in the Blockchain can only be made with the consensus of the majority giving it transparency.
Ethereum: A Brief History
The original Ethereum concept was conceived through a published paper by Vitalik Buterin in 2013. The platform was launched two years later in 2015 by Joe Lubin and Buterin. The Ethereum founders were the first to understand Blockchain technology’s full potential, which exceeded facilitating virtual currency’s secure trading.
Bitcoin vs Ethereum
Compared to Bitcoin, Ethereum offers many exchange methods like Cryptocurrency, Ethereum Virtual Machine (EVM), and Smart Contracts instead of Bitcoin, which trades only in Cryptocurrency. Another striking difference is Ethereum’s proof of stake (PoS) system and Bitcoin’s proof of work (PoW) system as security protocols. Ethereum’s block-time (12 sec) is also considerably lower than Bitcoin’s (10 min), which translates into more mined blocks for Ethereum and finally results in more Ether coins. The most critical difference amidst Bitcoin and Ethereum is that Bitcoin has a limited supply of 21 million, whereas more than 118 million Ether coins were in circulation in 2021.
Ether’s Dominance and Price Fluctuations
Ether dominates the Cryptocurrency market, and it hit an all-time high in its prices in December 2021 of 22.40%. However, it has been on a steady decline since the high. It has lost 4% in the past two months, and there was also a 3% decline on 6th March, which made the dominance slip down to 18.40%.
The Bottom Line
To conclude, the Ethereum developers hoped that Ethereum would be the solution for all the utilization of Blockchain technology that does not yet have a personalized system to use. But, Ethereum still suffers through some similar problems like Bitcoin regarding stability and its transaction fees (gas fees).
However, the developers are constantly working on trying and solving these problems. There might have been some dramatic fluctuations in the prices of this volatile currency, but it has also observed massive steady growth in the past years since its release in 2015. This growth and its limitless capability in applications of Blockchain technology make it very attractive to investors explaining its dominance over the Crypto market.