Ether, the native cryptocurrency of the Ethereum network, has reached a new all-time high of over $16, as the network’s fundamentals and adoption continue to improve. The second-largest cryptocurrency by market capitalization has outperformed Bitcoin and other major coins in the past week, gaining over 30% in value.
Ethereum’s network activity and innovation
One of the main drivers of Ether’s price surge is the increasing network activity and innovation on the Ethereum platform. Ethereum is the leading smart contract platform that enables decentralized applications (DApps), decentralized finance (DeFi), non-fungible tokens (NFTs), and other use cases. According to the data from Etherscan, the number of daily transactions on Ethereum has reached over 1.3 million, the highest level since January 2018. The number of active addresses on Ethereum has also reached over 600,000, the highest level since July 2020.
Ethereum is also the hub of innovation and development in the crypto space, as it hosts the most number of DApps, DeFi protocols, and NFT projects. According to the data from DappRadar, there are over 2,800 DApps on Ethereum, with over 100,000 daily active users and over $40 billion in total value locked. DeFi, which is the fastest-growing sector in the crypto industry, accounts for over 90% of the DApps on Ethereum, with popular protocols such as Uniswap, Aave, Maker, and Compound. NFTs, which are unique digital assets that represent art, collectibles, gaming, and other items, are also gaining traction on Ethereum, with platforms such as CryptoPunks, CryptoKitties, and Rarible.
Ethereum’s network upgrades and scalability
Another factor that is boosting Ether’s price is the network upgrades and scalability solutions that are being implemented or planned on the Ethereum platform. Ethereum is undergoing a major transition from the current proof-of-work (PoW) consensus mechanism to the more efficient and secure proof-of-stake (PoS) consensus mechanism, which will reduce the energy consumption and environmental impact of the network. The transition, which is expected to be completed by the end of 2024, will also increase the network’s throughput and security, and enable new features such as sharding and rollups.
Sharding is a technique that splits the network into multiple parallel chains, called shards, that can process transactions faster and cheaper. Rollups are a technique that aggregates transactions off-chain and submits them to the main chain, reducing the congestion and fees on the network. Both sharding and rollups are expected to increase the scalability and usability of the Ethereum platform, and support the growing demand and adoption of DApps, DeFi, and NFTs.
Ethereum’s network value and adoption
The third factor that is propelling Ether’s price is the network value and adoption of the Ethereum platform. Ethereum is the second-largest cryptocurrency by market capitalization, with over $180 billion in value. Ether is also the most widely used and traded cryptocurrency, with over $40 billion in daily volume and over $20 billion in daily liquidity. Ether is also the most popular cryptocurrency for institutional investors, as it is the second-largest holding of the Grayscale Bitcoin Trust, the largest crypto asset manager in the world. Ether is also the most popular cryptocurrency for retail investors, as it is the most widely available and accessible coin on various platforms, such as Coinbase, Binance, PayPal, and Robinhood.
Ethereum is also the most adopted and influential platform in the crypto space, as it has the largest and most diverse community of developers, users, and supporters. Ethereum has over 200,000 developers, who contribute to the network’s innovation and improvement. Ethereum also has over 10 million users, who interact with the network’s DApps, DeFi, and NFTs. Ethereum also has over 100 million supporters, who believe in the network’s vision and potential.
Ether price surges over $16 as fundamentals strengthen. The second-largest cryptocurrency by market capitalization has outperformed Bitcoin and other major coins in the past week, as the network’s activity, innovation, upgrades, scalability, value, and adoption continue to improve.
