Table of Contents
- 1 1. The Bitcoin rally is reaching maturity
- 2 2. The Explosion of NFTs
- 3 3. Increasing acceptance and investment firms
- 4 4. Visa Accepts Ethereum Transactions
- 5 5. A Bull Market of Cryptocurrency
- 6 6. Ethereum’s central idea
- 7 7. More Influx of Governmental Interest
- 8 8. Etherium is less expensive
- 9 9. Ethereum setting in motion exchange-traded funds
- 10 10. Making Large Sums of Investment from Corporations
It is not unprecedented throughout technology circles to see heated discussion on several subjects. Nothing has become more controversial in past years than debates about which blockchain and cryptocurrency combination will finally dominate the world.
At the outset of a crypto era, the simple majority option is Bitcoin, which now has stood atop the total market rankings since inception. Regrettably, most analysts do not believe it would last. The Bitcoin network, as the forefather of all cryptocurrencies, is showing its maturity. It has some potential shortcomings, not just the least of its refusal to grow.
Over the last year, Ethereum has developed from strength to strength. Following a several-year downturn in cryptocurrency markets, Ethereum has joined Bitcoin towards soaring past its recent all-time peaks. Moreover, Ethereum has also made inroads into the blockchain industry, challenging Bitcoin’s popularity.
A current wave lifts all sails, and the blockchain industry has so far been riding large waves in 2021.
The favorable market conditions of Ethereum have generated much beneficial public attention for technological advances featuring the second-largest crypto. Out of a thriving turnover in NFTs to the inflow of global funding, here are ten reasons pushing Ethereum’s rise.
1. The Bitcoin rally is reaching maturity
The value of Bitcoin began to rise earlier last year, while the pandemic caused financial stocks across the world to plunge. When pandemic-driven lockdowns began, stock markets for businesses began to collapse or behave unpredictably, and supply channels have suffered in nearly all industries.
As an effect, many buyers are now interested in cryptocurrencies, with trading volumes on exchanges worldwide dramatically after the first quarter last year. Although the majority of this attention focuses on Bitcoin, Ethereum began to gain attention as well.
After over a year, Bitcoin’s boom has almost reached maturity, with a market valuation of over a trillion US dollars and yields that have increased by more than 200 percent. As an outcome, major crypto participants are already looking to its next ideal solution, the Ethereum.
2. The Explosion of NFTs
In 2021, NFTs took a lot of attention and hype in blockchain technologies. Non-fungible tokens, or NFTs, are digital objects whose ownership registration is on the blockchain.
The $69.3 million selling of the digital artwork of Beeple via renowned auction site Christie’s, as well as the NBA’s $370 million in NFT revenues in 2021, are two of the biggest news headlines involving NFTs for 2021.
The rest of the NFT industry currently dominates the Ethereum network. Though, this is just beginning to improve. Dapper Labs, the developers of NBA Top Shot, revealed plans to establish its Flow network blockchain in April.
At the moment, Binance, a pioneering crypto exchange, plans to open on its NFT network in June. Although Binance would enable Ethereum-based NFTs trading in its network, it will also sell NFTs on its Binance Smart Chain.
These innovations would certainly reduce Ethereum’s dominance of the thriving NFT business in the immediate future. However, if the demand continues to expand like last year, Ethereum will expect to drive beneficially from the NFT trend.
3. Increasing acceptance and investment firms
The cryptocurrency rally in 2020 attracted international traders as well. Unlike institutional investors, some large companies and trusts make millions of dollars in acquisitions that can drive the market more than any people.
You might well recently heard entrepreneurs and personalities such as Tesla founder Elon Musk, tv host and developer Mark Cuban, and many others publicly discuss cryptocurrencies. These events attracted more international participants, who might otherwise only involved in stock exchanges like NASDAQ and so on., to cryptocurrencies.
Furthermore, anything that impacts Bitcoin impacts Ethereum nearly equivalent. In February of this year, banking giant Mastercard announced that it would begin accepting cryptocurrency on its platform in 2021, and other organizations are likely to be competitive. All of which affect the value of Ethereum, including the prices of Bitcoin and other cryptos.
4. Visa Accepts Ethereum Transactions
Visa is a banking powerhouse that handles half of all card purchases beyond China. Visa has been one of the world’s largest firms, processing trillions of dollars in payments on its system per year.
Visa confirmed plans to create testing payment transfer by using Ethereum-based Dollar Coin in March 2021. The US Dollar Coin is considered a reliable coin whose value is at a ratio for each US dollar.
As a consequence, this will significantly minimize Visa’s costs of settling major cross-border settlements. The decision was a massive boost of confidence in Ethereum’s technologies in one of the world’s most powerful financial institutions.
5. A Bull Market of Cryptocurrency
Bitcoin is the first cryptocurrency, and its activities continue to be a significant predictor of the success of other digital currencies. Around late December 2020, Bitcoin formally signaled the culmination of a multi-year crypto-bearish-trend when it surpassed its recent all-time peak of $20,000.
Nevertheless, Ethereum broke through against both Bitcoin and the US dollar during December 2020. Bitcoin’s worth surpassed times three around mid-December 2020 to April 2021, starting a record of an all-time milestone of nearly $65,000. During the same time frame, Ethereum increased from $555 to $2,760 — currently approaching $4,000.
This peak marks a nearly fivefold rise in the valuation of Ethereum in US dollars. Ethereum’s relative value to Bitcoin has increased from 0.3 BTC during December 10 to far more like 0.5 BTC in late April.
6. Ethereum’s central idea
Buterin developed the Ethereum network to overcome Bitcoin’s limitations. The Ethereum framework operates for a wide range of applications, including social networks and whole companies, instead of just monetary institutions.
Presently, as blockchain adoption grows globally, the Ethereum chain has succeeded Bitcoin in prominence since more technologies can create on top of it. The Bitcoin system is based on the principle of proof-of-work, while Ethereum is on the proof-of-stake scheme, which offers up to new possibilities.
It has the potential to reduce transaction fees, energy demand, and other costs. It also helps owners gain interest in Ether trades, unlike Bitcoin, which generates new bits once a transaction occurs.
7. More Influx of Governmental Interest
European Investment Bank of European Union revealed intentions to offer €100 million through bonds upon the Ethereum blockchain in April 2021. Previously, this is the central discourse of a research paper released in January 2020 by Bank of International Payments, which reported that 80 percent of the world’s banking system explore options of creating their blockchain-based digital currencies.
Such significant steps toward banking system credibility demonstrate that Ethereum is gradually becoming a financial standard.
8. Etherium is less expensive
The most basic explanation is that, after its bull run, Ethereum is still inexpensive than Bitcoin. Although cryptocurrency trading is expanding, it is still in its infancy, which means most traders want anything they can believe.
As a result, funds now direct into Bitcoin, Ethereum, and Ripple, the world’s three most valuable currencies. Talking about Ripple, Ethereum has benefited over the issue of business under Ripple which is now under scrutiny by the Securities and Exchange Commission (SEC).
9. Ethereum setting in motion exchange-traded funds
ETF or Exchange Traded Funds are a form of security that tracks an asset being purchased and sold in the same manner that stocks can. For institutional buyers, ETFs are seen as a more appealing solution to trade cryptocurrencies actively.
The Ontario Securities Commission authorized three ETFs from Ethereum for listing upon Toronto Stock Exchange in April 2021. This event could be a sign of things of Ethereum ETFs breakthrough inside the United States.
It is because crypto exchange ETFs had a difficult time gaining recognition. The Securities and Exchange Commission of the United States has consistently withheld the approval of ETFs based on cryptocurrencies like Bitcoin or Ethereum.
10. Making Large Sums of Investment from Corporations
Visa is like every other major corporation that is embracing Ethereum. According to CoinShares, institutional interest in Ethereum totaled $4.2 billion during the first phase of 2021. Ethereum received $113 million in foreign investments over a single week in March 2021. Hence, this was nearly half of all institutional investment for cryptocurrency for that week.
Societe Generale and Santander, two of Europe’s largest banks, have also sold substantial bonds upon Ethereum’s network. Societe Generale’s €100 million Ethereum issuance in April 2021 received the best triple-A ranking by bond credit rating companies, namely Moody’s and Fitch.
Over the first period of 2021, Ethereum has seen tremendous success. Ethereum’s explosive growth is likely to continue using its Ethereum-based apps, achieving greater widespread adoption.
Presuming that all of the processes go smoothly, Ethereum could succeed out from a better situation to eventually end Bitcoin’s rich legacy as crypto supreme. Ethereum would be a trustworthy framework with far fewer scalability challenges and a far more comprehensive spec-wise than its key rivals.
The increasing power of Ethereum against Bitcoin is a distinctly encouraging indication of the success of a second-largest blockchain. Although most observers believe Ethereum would never overtake Bitcoin in market capitalization. They do foresee it will continue to increase its shares of the thriving cryptocurrency industry.
Only time will reveal if the unveiling of the expansion echoes the start of a new cryptocurrency generation. However, one thing is clear; a brighter day is starting to dawn towards Ethereum, including the cryptocurrency sector itself.
Indeed, Ethereum is pummeling new highs in the blockchain era for 2021.