What is ETH?
Etherium turned five years old this year and is now the largest blockchain platform, running thousands of decentralized applications.
Ether (ETH) is the Etherium cryptocurrency. Its price and market capitalization are second only to bitcoin.
The Etherium platform includes programmable smart contracts and decentralized applications. Dapps can be created and run without downtime, fraud, control, or interference from third parties. This means you can save, spend and invest without lawyers or notaries. It makes the process cheaper and faster.
Ether transactions take seconds and bitcoin transactions to take minutes.
Etherium uses its blockchain-based programming language called Solidity to support decentralized applications.
Bitcoin was created as an alternative to paper currencies and is a means to exchange and store value, while Etherium was conceived as a platform to facilitate immutable, programmable contracts and applications using its currency. Additionally, bitcoin is limited to 21 million coins, while Ether has no such limit.
Etherium Price Overview
It’s a fascinating story with time travel and parallel realities.
It all started on August 7, 2015, when Ether started at $2.77. By March 13, 2016, it had already reached $15 and exceeded its market capitalization of $1 billion for the first time.
The launch of DAO (decentralized autonomous organization) – first raised ETH to $21 and then dropped to $11 after stealing the equivalent of more than $50 million (due to weakness in DAO’s smart contract software). What does time travel have to do with it? We’ll have to wait a little longer.
Most Ether holders agreed to help restore the network to pre-theft condition, they did an unrealistic job. But some didn’t. This led to the division of Etherium into two parts: Etherium (ETH) is the reality where the theft didn’t happen, and Etherium Classic (ETC) is the reality where the original chain stretched. Most of the founders stayed with ETH and the platform continues to evolve, but unfortunately, ETC is no longer compatible with Etherium updates.
Just a few months later, due to a DDoS attack, the price dropped even further to $7-9 per coin. Steps were then taken to make the network more resilient, and this changed the dynamic for the better.
In early 2017, the price of Etherium skyrocketed and the number of unconfirmed bitcoin transactions reached 200,000. Many investors and miners were looking for alternatives to BTC.
In January 2018, the price of Etherium soared to $1,400. You can check the ETH to BTC ratio chart every hour to see this coin race. But then the Great Crypto Crash happened. Everything went south, and by September, the cryptocurrency market was down 80%. ETH continued to fall, so from $1,400 in January, ETH fell to below $100 in December 2018, but with the promise of recovery.
The rapid development of the crypto market has caused a lot of skepticism. Is this all a bubble? It’s all too good to be true. But the world needs time to catch up with the level of new technology. It takes time to perfect the work, to sort out the legislation, to reach the desired level of security, etc.
The Etherium platform is evolving and improving. A lot of work has been done in 2019, and it has begun to bear fruit. Major players such as Samsung, Microsoft, and Opera browser have joined the Etherium ecosystem.
The price of ETH didn’t rise much in 2019, but the effort spent on the recovery laid the groundwork for growth in 2020.
ETH price fluctuations in 2020
Etherium started the year with a price of $128 and an uptrend. The price rose to $285 in February, but the rise was replaced by a fall during the pandemic. The cryptocurrency market nearly halved in March but has steadily gained momentum since then as the world discovers new ways to use blockchain in our new reality.
By August, decentralized financial services (Defi) are beginning to flourish, and the price of Etherium is rising as the majority of decentralized applications are Defi.
In September, the price dropped from $480 to $330 before the “maximum” deadline expired. On September 25, a record 458,000 Etherium option contracts expired. In October, Etherium faced three “resistance points” at $360, $390, and $417. At the time of writing, the price is $430 per coin, and that number continues to rise.
It’s been a tough year, but a good one for Etherium. As of this writing, its market capitalization is over $48 billion. The year isn’t over yet, and ETH has already more than doubled. Etherium surpassed the record for the number of daily transactions set in January 2018. The decentralized financial services (Defi) market is showing more activity.
Etherium is becoming the preferred protocol option for smart contracts, as multibillion-dollar corporations start to operate based on Etherium.
Ernst & Young (“Ernst & Young”) released the EY OpsChain procurement network on Etherium.
And the Associated Press used Etherium and EOS blockchains to publish U.S. election results for the first time.