How Popular is Ethereum?
Bitcoin is the most popular decentralised cryptocurrency by far, but many consider Ethereum the second-most important digital currency. However, just as there are a vast array of gaming platforms like Goldenslot, Bitcoin and Ethereum are only two of many similar cryptocurrencies emerging worldwide.
How popular is Ethereum with the high-value altcoins that now abound? Find out below.
What Is Ethereum?
A blockchain platform with its own version of cryptocurrency, Ethereum launched in 2015 using open-source, decentralised blockchain technology. While it has a far smaller market capitalisation than Bitcoin by most measures, Ethereum remains the most widely used blockchain. Its platform allowed it to create a cryptocurrency in the same vein as Bitcoin, and it has enjoyed faster growth than its predecessor.
Bitcoin grew only 261% in 2020, while Ethereum experienced an 856% growth in the same period. The Ether (ETH) blockchain facilitates the building and running of smart contracts. It also allows for distributed applications without downtime, fraud, or third-party interference.
How Much Is Ethereum Worth?
Ethereum has not been spared the significant price fluctuations of typical digital currencies since its introduction to the market. It started trading at about $1, and the price held for several months. However, the token price hit an all-time high of $1,358 in January 2018 before plunging back down to $83 by the end of that year.
While Ethereum’s value has seen ups and downs, its overall level has surged. It was trading at around $140 by April 2020 and rose exponentially to around $3,349 in May 2021. This huge increase in value brought the platform renewed attention from investors and speculators alike, and its popularity has continued to grow unabated.
Why is Ethereum Popular?
Ethereum and Bitcoin are both decentralised networks powered by blockchain technology. The reason for their fame differs, though. Ethereum is most notable for its much broader application than Bitcoin.
Bitcoin mainly functions as a digital currency, whereas Ethereum also supports smart contracts and decentralised applications (DApps).
- Smart contracts refer to programmed and automated contracts that cannot be retroactively changed and do not require third-party support to run. For example, smart contracts power non-fungible tokens (NFTs) used to verify authenticity and ownership.
- Non-fungible tokens (NFTs) are digital files stored on the blockchain, including audio, video, and art. Each NFT features a digital signature that is unique and difficult to duplicate.
- Decentralised applications (DApps) run on the blockchain across multiple points, making them almost impossible to shut down and highly secure.
Ethereum’s capacity has meant that it now powers numerous NFTs and DApps using its blockchain. The blockchain’s transition to Ethereum 2.0 should also take effect by the end of 2021. In particular, the market is excited about the upgrades to the blockchain’s reliability, scalability, and sustainability.
Weighing Up Ethereum’s Prospects
As the second-largest blockchain after Bitcoin, Ethereum is still the most commonly employed blockchain platform. It facilitates many different smart contracts, NFTs, and DApps, and has its own digital currency. However popular Ethereum seems, it still necessitates calculated risks and diversification.
If you want to invest in Ethereum, the price of the Ether coin is still volatile. It remains akin to a gamble on Goldenslot if you go into it as a get-rich-quick scheme. If you purchase it with the hope that the price will rise, a long-term investment strategy is far wiser.