Unlike Bitcoin and other altcoins, Ethereum is not designed to have the same functions. While it does have its own Ethereum price, what it does is it pays for specific actions on the network. Users receive it in exchange for using their computer power. They validate transactions and contribute to its development.
Ether’s market relies on the same exchange that surrounds the Bitcoin network. This is one of the similarities it has with the most popular cryptocurrency. But Ethereum did not progress the same way as Bitcoin did.
Ethereum price determinants
One of the biggest factors that affect the Ethereum price is mining. Ethereum mining influences the price by increasing the supply. Miners can either hold or sell their coins. But Ethereum’s current version controls a proof-of-work based agreement, rewarding computers that help security. Once it starts to develop further, the Ethereum price is expected to change.
Of course, the number of users is also another factor. The more people see Ethereum’s use, the more it affects the Ethereum price. More users gather more interest, and that is something that can affect the overall health of Ethereum.
Because of the early stages, it has experienced huge Ethereum price fluctuations. It once logged chances of 31%, 16.7%, and 53.7% in a span of one month. It is important to take note that most cryptocurrencies go through bigger price movements during its first years.
Some may see the rise and fall of prices negatively, while others see it as an opportunity to earn. In fact, there are users who continue to make the most out of the profit-making chances provided by Ethereum.
Users can buy and sell ETH in different ways. They have the option to use fiat currency and Bitcoin. Several exchange platforms allow these transactions to occur. At the same time, some organizations began to offer these trades as well.
Due to the volatility of the Ethereum price, there are traders speculating on its future value. It is an attempt to turn the fluctuations into profit. On the other hand, some use it to offset Bitcoin and altcoins.
What’s next for Ethereum?
Ethereum can be more than what it is today considering its current progress. As developers continue to work on its improvements, there’s a big possibility for its price to go up. Once a larger crowd catches on the applications of Ethereum, expect more developments to enter and a more stable market. Keep an eye out. This might just be the opportunity we’ve all been waiting for.