Global interest in the crypto sector has significantly increased in the last few years, causing a lot of heated debates among central banks, regulators, and institutional investors. Some of the most considered digital assets today are Bitcoin and Ethereum, which have brought many innovations. Bitcoin is the first cryptocurrency ever created, inspiring the other digital currencies that appeared after.
Ethereum is one of the most preferred cryptocurrencies by investors, and this fact is seen in numbers, as the market cap of Ethereum represents nearly 20% of the global crypto market. For those looking to have a diversified portfolio, Ethereum is one of the safest options, although you still need to pay attention to the fluctuation in the Ethereum price USD . So, Ethereum is a crypto that provides value if you are willing to navigate the volatility of the crypto space.
However, is it a good time to purchase ETH at the moment? Let’s figure it out.
A look at the Ethereum history
Everything regarding cryptocurrencies started with Bitcoin when it was launched in 2009. Bitcoin was created as an experiment that allowed people to trade online and offer something new to fiat money. But no one expected cryptocurrencies to have such a big success even many years after their release. Bitcoin inspired several other cryptocurrencies that appeared in the market after, including Ethereum. But Ethereum was made to overcome the shortcomings of Bitcoin, and it did that, as besides being a token for trading, Ethereum also enables the creation of smart contracts and dApps, all of these happening without relying on a mediator.
Ethereum was created in November 2013 by Vitalik Buterin, with the publication of a white paper in which he explained in detail how the new digital asset worked. Ethereum drew interest in early 2014 when the concept was made public to a large audience at a Bitcoin conference. That same year, Ethereum succeeded in raising huge capital, as it sold more than $18 million worth of ETH.
Ethereum price history
Since the launch of Ethereum, its price remained under $1 for almost the whole year. 2016 was the time in which Ethereum crossed the $10 mark, as on March 4, it reached $10.03. In the following years, Ethereum gained more and more popularity, and this fact was seen in the price value, as it crossed the $1000 mark in the next year.
Because the market was affected by a crypto crash, the price of Ether changed in the following years, and it reduced significantly to only $100. In the subsequent years, between 2019-2021, the price increased again, reaching an all-time high of $4,815. Ethereum price fluctuations are expected, as the crypto space is characterized by high volatility, where it is normal to appear many ups and downs. So, even if things take some time, the prices will likely recover and give investors new opportunities.
The innovations behind Ethereum
Ethereum relies on smart contract functionality, cryptographic techniques and a computer network, making it an innovative platform. The network is based on an Ethereum Virtual Machine that works with the help of public nodes that update the Ethereum blockchain. The blockchain enables users to create contracts that automatically perform some tasks when the specific conditions are met. This is made with the help of the platform’s programming language, Solidity.
First, Ethereum was based on the PoW consensus mechanism, which required miners to solve complicated mathematical problems so that they would be able to add new blocks to the chain. However, when the blockchain upgraded to Ethereum 2.0, it transitioned to a PoS model to reduce its environmental impact. Ethereum has some unique characteristics that differentiate it from the other digital currencies, like:
- Smart contracts and dApps. Ethereum was created to have a unique capability, and because of that, it can create self-execution contracts. This lets the network host dApps with different uses, including gaming and DeFi.
- Liquidity and market capitalization. In the crypto space, two digital coins are known for their huge market cap: Bitcoin and Ethereum. Due to this fact, Ethereum is one of the best crypto investors can opt for.
- Ecosystem and network effect. Ethereum benefits from a massive network of investors, users and miners, which increase its value.
Is it a good time to buy ETH now?
Whether you should or shouldn’t buy ETH at the moment is a personal choice that greatly depends on your goals. Ethereum is a promising cryptocurrency with many advantages, as it can be used for a larger system of function. This is because it is not only a store of value but also an alternative that allows different operations on the network, including smart contracts and dApps. Also, with the help of the constant update on the blockchain network, Ethereum will always have a long-term value, as future upgrades are intended to reduce transaction fees and boost the network’s speed.
Ethereum has been in the crypto market for quite a long time, and during this time, it experienced many highs and lows but still managed to recover from the challenging periods. Cryptocurrencies are volatile, and no one can determine exactly whether you should buy them now, as it is a personal choice. You should always keep in mind that because cryptocurrencies are volatile, you can have big returns but also significant losses. Hence, it is very important to make decisions only after you have researched plenty of information on this topic and embrace a long-term mindset.
Despite the changes it underwent, Ethereum is still an important asset and one of the safest bets people can consider. Until now, Ethereum has greatly evolved and brought advantages to those investing in ETH. However, no one can point out exactly where the future of Ethereum is heading, as crypto is highly volatile, and many things can bring price fluctuations.