Ether Going Mainstream – the Next Big Crypto Coin?

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Throughout the years, we’ve seen numerous cryptocurrencies attempting to break into the mainstream. The crypto industry was largely unmoved by these attempts, and as a result, Bitcoin remained king. No one came even close to the world’s largest cryptocurrency by market volume which started begin accepted in a variety of ways. From Bitcoin gambling to online merchants, Bitcoin’s march left no space for other cryptos.

Until last week. The second biggest crypto coin, Ether, just began its frequently-talked ascent. Thanks to the non-fungible token craze and increased adoption, Ethereum broke over $3,000 for the first time and is on the verge of reaching new heights. Its rise has made it go mainstream in a time where Bitcoin’s price is once again on the downside, at least for the time being.

An Explosion of NFTs

There’s no question that the major reason why Ethereum is surging are NFTs. People have started looking at Ethereum as a major Bitcoin alternative and a real utility. There are two more technical developments that are fueling Ether’s rise. The first one is the public sale of Coinbase, the giant crypto brokerage firm, and the other one is the fact that Ether just went through a hard fork.

The latter is basically an upgrade of the Ethereum network that allows faster transaction speeds. Aside from the technical reasons, the market is currently going for a shift, with new investors seeking alternatives to Bitcoin. Everyone’s trying to diversify their holdings, with Ethereum being the choice for most new investors.

Around the world, cryptocurrencies are becoming huge. S&P Dow Jones Indices has just validated cryptocurrencies, including an Ethereum index besides the Bitcoin and cryptocurrency megacap indexes. Digital and traditional currency markets are not mutually exclusive anymore. Experts believe that the world is facing inflation in the wake of the COVID-19 pandemic as the global economy heats up. This is another big reason fueling Ether’s rise.

Many believe that Ethereum’s price will rise in the coming weeks and months. Investors know that this has been years into the making and are finally reaping their reward.

DeFi Juggernaut

Ethereum is part of the DeFi revolution. Decentralized finance offers financial products that don’t rely on central banks. As such, it’s the perfect antidote to potential inflation in the future. It allows people to fight the uncertainty caused by central banks printing money and supply shocks too.

Of course, this doesn’t mean you should just put all the money you can into it. Investors should be very careful with ETH. Its rise has been pretty sharp, drawing comparisons to Bitcoin’s sudden rise and fall in 2018. Some experts believe that Ether is a much stabler coin, so the price will fluctuate, but not as much as Bitcoin’s.

It remains to be seen if the latest price hike will establish Ether as a Bitcoin rival or it’s just been a fluke. The coming period will clear a lot of the confusion, so if you’re planning on investing, now’s the time to watch the market.

 

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May 5, 2021: • No Comments

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