Despite being January a slow month for the cryptocurrency market, ethereum’s price rises about 30%. Over the last couple of days, unlike bitcoin, ethereum price rises to the $1,200 value in the wake of its Casper update, major partnerships and increased usage of ethereum-backed blockchain technology.
Ethereum gets a 30% hike in its value
A blockchain-based technology, Ethereum is an open source software platform that has gained a lot of attention from the mainstream media. For quite some time, the market may not have been generous to other cryptocurrencies but ethereum has reported quite an upward momentum all the while.
According to the reports, ethereum that has been on $930, got raised over $1,200 that means a weekly rise of about 30%. The trade volume of ETH for a 24 hour period has been somewhat around $4.5billion. Talking about other cryptocurrencies such as bitcoin, the majority of them only dropped while ethereum remain resilient towards these downward pressures.
The second biggest cryptocurrency in the world, the 30% leap in ethereum’s price has led to its exposure in the media and intensified usage. Keeping aside the correction trend of the overall market, ethereum managed to bounce back to $1,200.05.
Increased demand for ethereum-backed blockchain technology
With the increment in the decentralized applications and number of ICOs, the demand for ethereum will only rise further. Due to the number of scalability improvements for the network and the level of support this cryptocurrency has, this platform has become a platform of choice.
The plan is to address ethereum’s scalability challenges by implementing the Casper update that is already undergoing the testing process.
Vitalik Buterin, the co-founder of ethereum explained:
“The Casper aspect of Casper, where two conflicting blocks should not be able to be finalized, seems to actually happen running and the network agrees all along what the final chain is. So that part has been totally successful. On the Sharding side, quite a lot of work has started.”
Another reason for the improvement in ethereum’s value is the increasing use of ethereum backed blockchain by the market. Recently, the team of NASA has declared that they plan to use the ethereum network in space and has already awarded a grant to research the potential of blockchain technology out there. Another instance is of a major oil company, Ondiflo that is going to make use of ethereum based blockchain technology to automate the ticket based processing of oil and gas.
Not to mention the fact, the recent major partnerships of ethereum with world’s largest banks for the money transfer has only fueled the popularity and usage of ethereum.
What are your views on the rise in prices of the ethereum? Do you think it will touch the mark of $2,000? Let us know your thoughts below! Let us know your thought in comments below.
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Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.