This week, Ethereum has reached more than $4,000 and around three times its former all-time high set back in early 2018. The Ethereum of then versus now is very different – an entire ecosystem is built on its back.
The currently trending cryptocurrency has everything going for it and is beyond just a meme. Here are plenty of reasons why Ethereum is the hottest cryptocurrency of 2021 and why its long-term value could be unimaginable.
The Ethereum Ecosystem And Blockchain: DeFi, NFTs, And So Much More
Years ago, when Ethereum first got going, it was due to the boom related to initial coin offerings. The unusual and unorthodox fundraising method involved swapping ETH for newly minted ERC-20 tokens, and the crypto industry erupted.
New projects were popping up each day, some that today are blossoming ecosystems themselves, while others completely disappeared or went defunct during the bear market. The need to buy ETH to swap for new coins dried up and the value of Ethereum plummeted.
Today, however, real utility and innovation are driving up the value of Ethereum, with sustainable technologies that ensure the success of the speculative asset long into the future.
These technologies include DeFi, NFTs, and more. Utility tokens such as the COV token – the native utility token to the Covesting ecosystem – are all powered by Ethereum as ERC-20 tokens.
The amount of ETH locked up in DeFi applications is in the billions, and the digital goods landscape has been entirely disrupted by NFTs – also called non-fungible tokens. These one-of-a-kind tokens have been selling for millions worth of ETH, driving up the demand and interest of these products and services – and with it, ETH.
Ethereum 2.0: Addressing Scalability, Rising Fees And Contenders For Throne
Every transaction made on the Ethereum ecosystem involves spending some amount of ETH in gas fees. Users like to compare Bitcoin to digital gold, whereas Ethereum is much more like a commodity like oil or natural gas – just two of the fifty-plus CFDs trading on PrimeXBT.
Because of how congested the network has been, ETH gas fees have reached record highs. And while this shows how much revenue the Ethereum network can generate on any given day, the cost is hurting investors and innovation alike.
The ETH 2.0 upgrade addresses scalability and fees. Rising gas fees have allowed Ethereum competitors to flourish, but now Ethereum can rise to the occasion and snuff them out before they become a real threat.
EIP-1559: The Deflationary Mechanism That Makes ETH More Scarce Than BTC
If Ethereum is the undisputed king of altcoins already and only going to get stronger in the days ahead, all that’s left is to take on Bitcoin itself – and believe it or not; the top-ranked altcoin might give the number one cryptocurrency a run for its capital.
Although a flippening is still a stretch by most standards, a coming EIP-1559 fee structure change will make ETH more scarce in the future and allow it to address the one final factor that Bitcoin maximalists have against the altcoin.
ETH fees would be burned under this model, lowering the overall supply of Ether. The change is also designed to smooth out gas fee pricing volatility as another benefit to users and the ecosystem itself.
Trade And Earn With The Ethereum Trend On PrimeXBT
All of these factors have been behind the incredible rally in Ethereum from under $100 in 2020 to more than $4,000 in 2021. Ethereum by far has been among the best cryptocurrency to invest in this year. The trend has been only up, and traders on PrimeXBT have been profiting by leveraging Ethereum CFDs alongside forex, commodities, stock indices, and other crypto assets.
A recent PrimeXBT V2.0 upgrade also deeply integrated Ethereum within the account-level infrastructure of the award-winning trading platform. The update added support for ETH and ERC-20 versions of USDT and USDC as well as the COV utility token.
Users of the platform now have the ability to set up ETH-based margin accounts, trade Ethereum CFDs, and even access Ethereum-blockchain products and services such as DeFi staking, yield accounts, and much more – all under one roof. Get a free margin account before the Ethereum trend has come to an end.