May 10, 2021
Monday marked a new record value for ether—Ethereum’s up-and-coming digital token is finally getting its big break after living in bitcoin’s shadow.
Ether’s newest milestone was recorded in Asia; its remarkable growth has finally reached past $3,000 with no signs of slowing.
With ether holding second place in crypto popularity, it’s only natural for comparisons between Ethereum’s cryptocurrency and bitcoin to arise, pitting them against each other as rivals. Both are stored and traded as a digital currency, facilitating a decentralized financial system (DeFi). With that said, even though they share many features, bitcoin and ether each contain a certain uniqueness.
The initial purpose of ether was to complement, not rival, bitcoin. Unlike bitcoin, ether doesn’t strive to become a monetary system, but to serve as a means to power Ethereum’s decentralized software platform.
How Much Did Ethereum’s Value Jump Exactly?
Ethereum’s value has been breaking records, rising more than 300% over the past year. In fact, the astronomic increase of ether’s popularity has left many experts speculating whether it can outpace bitcoin and surpass its value in the future. Many have expectations of this being the case, as some signs are already announcing ether’s domination on the cryptocurrency market.
The outpacing is already happening, with ether marking its prices up by 8.7%, compared to bitcoin’s 3.5% value markup on the CoinDesk exchange on Monday. If this trend continues, bitcoin may be facing dethronement.
Another factor contributing to the popularity of ether are non-fungible tokens (NFTs) which run on the Ethereum blockchain. These unique pieces of digital art have attracted the curiosity of many, and, as a result, boosted Ethereum’s popularity.
At the time of writing, ether is valued at $3,439.49, and experts are predicting its value will soon break the $5,000 threshold. deVere Group CEO Nigel Green predicts this happening in the next seven days, also noting, “Ethereum is already years ahead of Bitcoin in everything but price and fame. There’s a real sense that 2021 is the year for Ether. Its time has come.”
The increasing value of cryptocurrencies mark the shift towards decentralized finance (DeFi) and away from traditional banking, with an increasing number of DeFi applications being built around Ethereum.
Whether it’s bitcoin, ether, or the memeable dogecoin, all predictions are pointing towards cryptocurrencies continuing to gain traction, popularity, and value. If you’ve been on the fence about investing in cryptocurrencies, consider this as a sign to finally do it. However, if you feel insecure about investing or overwhelmed by all the options and information available, you might consider getting help from a robo advisor to save yourself any headaches.