Factors increasing the value of Ethereum
Recently, value of Ethereum is dramatically increasing that surprised many people who wander why this coin has grown strongly like this. So what potential elements Ether has? Explore it through this article.
Concerns of Investors
While most of investors still work in the traditional ways namely buying stocks or doing foreign exchanges, others worry about environment of the world’s economy. That’s why in recent years, cryptocurrency grabs the investor’s attention on seeking others alternative property beside the traditional investment.
In the ascendant positions of Ethereum
In this part, we shall concentrate on the intrinsic value of Ether. It lies in the transaction volume and on demand of using applications.
- First, it is essential to mention Transcendence of Ethereum, which has cheaper and more flexible networks.
- Blockchain Technology has more applications than creating Bitcoin cryptocurrency. There is no doubt when Blockchain application of Ether is on the hot place of Coinmarketcap.
- Short-time creating block helps the transaction of Ethereum quickly. Bitcoin starts face to problems of technology. It takes a long time for transaction solved.
It is clearly that one serious obstacle for its growth. Because of setting up technology of Ethereum so completing all the transaction becomes more strongly. It can do faster and cheaper than Bitcoin. Properly it is a motivation for developing widenly.
Fluctuation doesn’t affect its value
Ethereum has gone through the great duration. At the time of report, it has recorded the changes in one day, one month and especially the launching time it is accounted 31%, 16,7% and 53,7%.
Even though this changes can make coin less effective under the view of new investors, it brings chances to beginners as well.
The evaluation of Ethereum has been increasing 1000% in the past months, decreasing 10-40% is not negative significantly. In fact, according to many experts that is absolutely safe.
Of course, we still are going to see the growth of cryptocurrency in recent years and it helps this industry still go up. When it happens, the choice of investors is guaranteed and they keep it in hands.
Chart of Ethereum on the Poloniex
The impact of the network
The recent growth of Ethereum, both the use and investment needs can become the final key to succeed. As long as there is no destruction from the security hole, Ethereum is likely to become the leader and occupy a large part of the money market.
The increasing number of applications is also contributing to the increase in the value of the Ether. It plays an important role in applications such as analysis, prediction, market decentralization, cross-border payment services, digital signatures in transactions, digital rights management, and much more.
The number of etheric transactions in the Ethereum network is the ultimate evidence of increased real demand.
Since the beginning, attention to math has grown tremendously and today more and more players see it as a new investment option. When it comes to Ethereum in particular we are just beginning to see the first signs of investment demand.
They are at a stage where interest has grown from early investors to institutional and retail investors but once again it has just begun. This acceptance shows another turning point for Ethereum and an impressive change when you think of a few years ago, which is mostly traded secretly for the black market.
The value of Ethereum’s market capitalization increases rapidly compared to Bitcoin.
Big corporations behind Ethereum
The increasing market of cryptocurrency has contributed to the interest of institutional investors, which is driving a spectacular rise in the economy.
The demand for using the application for Ethereum is defined as the use of Ethereum and the Blockchain-based Ethereum network. This is attracting the serious attention of the major operators currently in the process of launching and developing applications using Ethereum.
The best illustration is the creation of the “Enterprise Ethereum Alliance,” 86 companies working together to create and develop standards for using Ethereum to track data and run smart contracts. “EEA” includes companies such as Microsoft, JPMorgan Chase, Intel, Accenture, UBS, Thomson Reuters and others.
Ethereum is on its way to become the standard in decentralized applications between cryptography, used by many giant groups. Ethereum is the second most valuable crypto-currency on the planet. It tends to be the greatest interest in the world to the technology and business community, large corporations as well as investor.