Ethereum Price

Ethereum ($ETH) is the second most valuable currency in terms of market capitalization, and the Ethereum platform provides a wide range of capabilities to its users. Unlike Bitcoin, which was created purely for the purpose of facilitating financial transactions, the Ethereum blockchain was created with a far broader purpose in mind. Moreover, the Ethereum price also fluctuates like Bitcoin.

Because Ethereum lacks revenues, earnings, or a formal balance sheet, determining the intrinsic worth of Ethereum coins is difficult. It has intrinsic worth, despite its difficulty in determining its value. To transact on Ethereum’s blockchain, which allows a range of financial services, Eth tokens are required. Ethereum’s price has risen far quicker than Bitcoin’s in the last year. The price of Ethereum has increased by almost 1,200 percent since March of last year.

How is Ethereum Price Determined?

The price of Ethereum is determined and regulated by the cryptocurrency’s market demand and supply. Virtual currency markets, like stock markets, feature order books with selling and buying orders. A rise in Ethereum demand will raise the price, while an increase in sell order supply would lower it.

Ethereum coins, unlike Bitcoin, have a higher intrinsic and inherent value. This is because every decentralized application developed on the Ethereum blockchain requires Ethereum coins to transact. Because transaction costs are determined by supply and demand, the price of transaction fees rises as the number of transactions on Ethereum rises.

Factors affecting the price of Ethereum

  • The amount of transaction fees on Ethereum’s blockchain rises as transaction volume rises. These fees go to Ethereum miners, therefore boosting the Eth supply. When transaction costs are greater, however, more Eth tokens are needed, as you must hold Ethereum to pay transaction fees.
  • The price of Bitcoin has an impact on the whole cryptocurrency market. When Bitcoin is bullish, other tokens, like Ethereum, are likely to follow suit.
  • The media’s coverage and news of cryptocurrencies have a significant impact on demand. While the majority of news and media has covered Bitcoin, few have yet to cover Ethereum.
  • Staking with Ethereum 2.0 is an enhancement to Ethereum’s network that allows you to earn interest by staking Ethereum. Although the Eth 2.0 network is already in beta, nearly $1 billion in Ethereum has already been staked, reducing the token’s market supply.

How High Can Ethereum’s Price Go?

Ethereum, according to some experts, might reach $10,500 in the next years. Because of the diverse range of useful applications on Ethereum, some investors believe its market cap will exceed Bitcoin’s. Ethereum’s pricing has historically been more volatile than Bitcoin’s. If you invest in Ethereum rather than Bitcoin, you’ll be taking on more risk in return for more potential upside.