Unknown seduction of Ethereum: Why sudden spikes of bitcoin

At the end of January 2023, Bitcoin’s price rose from about $ 140 to $ 1,000. This sudden and extraordinary surge is all about what triggered this dramatic increase in value. While some attribute it to a speculative madness or a new market trend, others point to the basic factors that have contributed to the rapid recognition of Ethereum.

Ethereum: The second largest blockchain with market capitalization

For those who do not know the cryptocurrency world, ETHEREUM (ETH) is often considered the second largest blockchain after Bitcoin (BTC). Launched in 2015, Ethereum was created by Vitalik Buterin as an open source software project aimed at developing a decentralized platform to develop smart contracts and decentralized applications (DAPPS).

Why did the price of Ethereum rise?

Many factors contributed to the rapid recognition of Ethereum:

• Regulatory Delight : In recent months, regulatory environment has become more favorable for cryptocurrencies around the world, including Ethereum. Governments have introduced stricter regulations, resulting in demand for increased alternative tools and intelligent contracts.

• Defi platforms rely on Ethereum scalability solutions, such as Ethereum Classic (ETC), which has helped to increase the need for cryptocurrency.

• Increased adoption : As more and more businesses and individuals are beginning to explore alternative tools, including cryptocurrencies, the rise in the price increase of Ethereum is partly attributed to increased adoption. This growth is nourished by the increasing mainstream of blockchain technology and its potential applications.

• Network Effects : A combination of strong network effect played a significant role in the recent recognition of Ethereum. As more and more users are dealing with the platform, the ETH value increases, creating a self -enhancing cycle that results in further growth.

Will you continue to grow?

Although difficult to predict the future, many factors suggest that Ethereum is growing further:

• Ethereum 2.0 : For the second layer of Ethereum, the Ethereum 2.0 (also known as Serenity) update for several years and promises significant scalability repairs, facilitating users to store and hand over large quantities for users. number of data.

• Increased use of use : As more and more businesses and individuals are investigating alternative tools, Ethereum is likely to increase. This growth is fueled by the Defi platforms, decentralized financial (defi) and other uses, which are beneficial from smart contracts and decentralized applications.

• Investor Emotions : The market is still bullish for cryptocurrencies, including Ethereum. As investors are looking for alternative assets that have high -yield potential, they are more likely to distribute their money to Ethereum.

Conclusion

The price of Ethereum suddenly proves the rapidly increasing demand for cryptocurrency and its underlying blockchain technology. While it is impossible to predict what will promote further growth, many factors suggest that Ethereum will continue to evaluate the value in the coming months. As investor emotions move towards more speculative assets, including cryptocurrencies such as Ethereum, take care of this space.

Legal Declaration : This article should not be considered as investment advice and is only for information purposes. Always do your own research and consult a financial advisor before making any investment decision.

SYSTEMIC RISK MARKET MAKER