The cryptocurrency market had a bullish year in 2021, with the prices of many cryptocurrencies skyrocketing, including Ethereum, which reached a high of $4800. Ethereum is a decentralized, open-source platform based on blockchain technology and featuring smart contract functionality. It is best known for its native token, Ether (ETH), which is the network’s cryptocurrency. Not only Ether, but also a variety of decentralized applications, smart contracts, and, more recently, non-fungible tokens (NFTs) are supported by the platform. Ethereum has its own blockchain, which developers can use to create what are known as “decentralized applications” (DApps). This means that developers would have to purchase Ether (ETH), Ethereum’s native token, in order to gain access to the network, and users would have to pay in Ether in order to interact with it. Due to this decentralized nature, you should know how bitcoin can benefit the unbanked.
Vitalik Buterin came up with the concept of Ethereum and published a white paper introducing it in 2013. When Vitalik Buterin was 17 years old, his father introduced him to Bitcoin, and he became very interested in the technology. Then there was Ethereum, which went live in 2015. Vitalik started suggesting ways to improve the bitcoin platform. Since its launch, Ether has risen to become the second most valuable cryptocurrency in terms of market capitalization, with a market cap of $403,950,076,186. Ethereum is only outranked by Bitcoin, and I believe this is due to the fact that Bitcoin was the first cryptocurrency, and while it makes use of blockchain technology for a variety of applications, Bitcoin remains a basic cryptocurrency, a medium of exchange, and a store of value. Ethereum, on the other hand, remains the world’s most popular altcoin.
Ether was first sold for $0.31 during the 2014 Initial Coin Offering, and it wasn’t until 2017 that the price surpassed $100. The price of ether then skyrocketed to $414 in about two months, and it took another five months for the bullish momentum to regain strength, bringing the price to $1418 in 2018. The price of Ethereum soared to new heights in November 2021, reaching over 4,800 US dollars thanks to technological advancements such as a super expensive art piece sold on the Ethereum blockchain for over 38,000 ETH, the Berlin update that reduced gas fees, and the arrival of Uniswap V3, a smart contract protocol designed to further optimize Ethereum trading. Due to the negative impact of demand and supply, ether is currently priced at $3368.88.
The crypto space is extremely volatile, which can be nerve-wracking for new investors because when they look at crypto, the price is what determines whether they should buy it or not, and what they want to know when they ask if crypto is a good investment or not is whether the crypto price will increase in the future. Even the best cryptos experience price drops from time to time, so whether the price is currently falling or rising has little bearing on the coin’s future price. For Ethereum, we must consider its fundamentals. Ethereum’s price has been volatile in recent months, but it remains a sound long-term investment.
This is where the fundamentals come into play; we must consider if the coin has changed, if its importance has decreased, or if its utility has decreased, and in the case of Ethereum, the answer to all of these questions is “no,” which simply means that the coin’s fundamentals have not changed, and the price drop is due to investor uncertainty in the economy as a whole, so it is more likely to recover. The number one rule of trading is to buy when the price is low and sell when the price is high, so investors should buy the dip in this case because the chances of recovery are very high. Despite the impact of volatility on Ethereum, it is still undergoing upgrades that will make it a more powerful cryptocurrency. The aspect of this that appeals to me the most is that the upgrade would lead to a faster processing speed and lower transaction fees.
Is Ethereum a good investment? If you’re looking for short-term profits, now would be a very dangerous time to stake Ethereum. But if you’re looking at investing for long-term benefits, then now is a great time to buy, and the reasons have already been given in the article.