Why is Cryptocurrency Ethereum on the Rise?

Several critics believe that the cryptocurrency Ethereum might cross Bitcoin in the future.

The cryptocurrency Ethereum is at its peak. It is the second-largest public cryptocurrency network based on both market capitalization and daily trading volume, and has shown remarkable growth over the past year, and it continues to grow.

Currently, Ethereum's biggest competitor is Bitcoin. Since China has tightened its cryptocurrency laws, and Tesla Chief Elon Musk changed his stand on Bitcoin, it witnessed a rapid fall in its value in May, putting Ethereum in the spotlight.

Some investors and critics predict that the Ether crypto has the potential to take over Bitcoin in the future. According to reports, as of June 6th; last week, Bitcoin rose by 0.48%, whereas Ethereum rose by 13.54%. In 2020, approximately US$231 million in Ethereum was traded in daily spot exchanges. Over the past year, Ethereum grew over 900%, whereas Bitcoin only witnessed a jump of 275%.

There might be numerous reasons behind Ethereum's surge.

Bitcoin prices matured early: 

The pandemic caused record dive in the stock prices last year, but Bitcoin prices kept rising. Stock prices for several companies started going down in 2020 because the lockdowns and the supply chains were jeopardized.

Several business leaders and investors started buying cryptocurrencies; since the reports show the market value of the global crypto market started rising from March 2020. Since Bitcoin is the best-known and the largest cryptocurrency in the world, most of the buyers invested in it. About a year after that, since Bitcoin prices have already matured, reaching a market capitalization of over a trillion dollars, investors are looking for the next best thing, which is Ethereum.

Acceptance by Tech Giants:

Large-scale organizations like Tesla and Square are investing in the crypto market in millions, which has caused the crypto market to move faster than before. Big celebrities and business owners like Elon Musk, Mark Cuban, and Jack Dorsey have used their social media platforms to enlighten their followers about their enthusiasm for cryptocurrency and encouraged potential buyers to invest in it. This motivated new investors to join the crypto market, which changed the market conditions for Ethereum.

The concept behind Ethereum:

When Vitalik Buterin designed Ethereum, he focused on eradicating all the limitations of Bitcoin. Ethereum is designed to work with anything, starting from social networks to entire corporations. As blockchain is growing worldwide, Ethereum is chosen over other cryptocurrencies since more applications can be developed on that.

The proof-of-stake algorithm used by Ethereum can facilitate lower transaction costs, less electricity consumption, and so much more. Ethereum also allows its investors to earn interests from its transactions.

Ethereum is cheaper

One of the chief reasons why investors are choosing Ethereum over Bitcoin is because it is cheaper. Since crypto trading is strengthening, investors look for cryptos they can be trust. Therefore, most of the buyers are attracted to Ethereum.

Ethereum is providing several facilities to investors. For investing, buyers look for something that assures their gains, and right now Ethereum is growing.