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- The world’s second-largest cryptocurrency is well-positioned to increase its market share.
- Ether’s price boom over recent months has been fuelled by soaring interest from major institutional investors.
- The launch of ether exchange-traded funds in Canada and surging demand for ether wallets to transact non-fungible tokens such as digital art have also pushed up the price.
Ethereum is on a record run and is most likely to not stop short of $5,000 within the next week. Nigel Green, CEO, and Founder of deVere Group, told Fortune that Ethereum’s time has come. He believes the world’s second-largest cryptocurrency is well-positioned to increase its market share.
Green says Ether is one of the main beneficiaries in the wider explosion in the volatile cryptocurrency market. He said the boom over recent months has been fuelled by soaring interest from major institutional investors. This is in addition to growing recognition that borderless digital currencies are the future of money.
Trying to catch up with bitcoin
James Quinn, managing director at Q9 Capital, a Hong Kong cryptocurrency private wealth manager, believes Ether is trying to catch up to late 2020 gains in bitcoin. He says the rally was really led by bitcoin because as a lot of the institutional investors came into space.
Quinn told CNBC that as the rally has matured over the last six months, there is DeFi (decentralized finance), and a lot of it is built on ethereum. He pointed out that this also reflects improvements to the ethereum blockchain.
Moreover, the launch of ether exchange-traded funds in Canada and surging demand for ether wallets to transact non-fungible tokens such as digital art have also pushed up the price.
Ethereum Blockchain
The Ether price spike is also attributed to the European Investment Bank has issued its first-ever digital bond sale on the Ethereum blockchain network. Fortune report says the supply of Ethereum has also been dropping amid increased demand.
As such, businesses have been investing in start-ups that revolve around Ethereum, including JP Morgan, Mastercard, and UBS. Green said Ethereum is already years ahead of bitcoin in everything but price and fame. He also believes that 2021 is going to be the year of Ether.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
