Why did Ethereum rise so fast (why did Ethereum rise so high)

Why Ethereum is rising so fast Editor’s note

Why is Ethereum rising so fast? Why did Ethereum rise so fast

1. Why has the price of Ethereum increased so many times?

The price of Bitcoin continues to rise after breaking the $10000 mark, and now it has reached $23000 Bitcoin has skyrocketed from December 2017 to early 2018, with an increase of over 300%; And since April this year, Ethereum has also continuously reached new historical highs. The growth of Bitcoin in the first quarter of 2020 reached around 30%, indicating that Ethernet has great potential to become the next digital currency. 2、 Why is the price of Ethereum so high

According to the data of CoinMarketCap, as of the end of June, the current price of Ethereum is US $18600. The price of Bitcoin has fallen back to around $19700, but still maintains a relatively stable price trend

Why did Ethereum rise so fast? Let Xiaomiao explain why Ethereum can grow rapidly:

1. Blockchain technology is decentralized, so its value can be controlled or owned by anyone Due to the lack of relationship between cryptoassets and traditional stocks, they are easily manipulated or destroyed, but they are not the only tradable technology

3. Blockchain itself is not used to exchange goods and services, as it is only a unit of account and will not be affected. If we use it as a payment method, its security will be very high Fourthly, Bitcoin’s position as a global reserve currency has been strengthened to ensure its security, and people will increasingly believe that it can be one of the most popular electronic currencies in the world

Why did Ethereum rise so high

Why did Ethereum rise so high? Because it has its own unique mechanism, its consensus is very strong, and it is also outstanding in technical analysis. The reason why Ethereum has risen for so many years is that its underlying public chain performance and ecological construction are becoming more and more mature, so it has the current ETH2.0

Now Ethereum has become one of the oldest blockchain platforms in the world with the most applications and the largest number of users. Although it is still in its early stage of development, as a digital currency market, we still need to pay attention to how Ethereum can make investors accept this encrypted asset, which depends mainly on its network effect and its value support

Let’s briefly introduce the basic aspects of Ethereum: Ethereum is a decentralized network, which can be used for various applications based on smart contracts, such as payment systems, DeFi (distributed finance), games, forecasting, etc. Many of them are built around the protocol, without other basic functions or services. Only these applications can run on Ethereum, and do not need third-party maintenance

In addition, this Ethernet coin has been called “Bitcoin on the blockchain” since its birth, but since last September, a large amount of funds have started to pour into Ethereum network. Now, as time goes by, more and more project parties begin to lay out Ethereum

So many people compare Ethereum to gold and oil. But for some new ordinary people, Ethereum is not suitable for investment or speculation, but more suitable for daily use, such as purchasing hotels and other consumption scenarios; In addition, Ethereum itself does not support transfer transactions, transfer storage and transfer fees, and does not have the ability to become a substitute for French currency Of course, Ethereum also has its own set of algorithms to solve the price fluctuation problem of Ethereum, which is that when the price changes, there will be a certain lag, which will affect the circulation behind it and lead to supply-demand imbalance. If this situation occurs, it means that Ethereum will become illiquid and difficult to track, while also causing losses to its holders. Therefore, Ethereum is actually more like a risk hedging tool. Since all tokens in the Ethereum network are in the process of issuance, once extreme circumstances occur, the Ethereum will fall sharply

However, from another perspective, at present, due to the high security and scalability of the Ethereum, there is a lot of room for growth of the Ethereum, especially the current serious congestion of Ethereum, and most people can not normally participate in the blockchain industry, which makes the Ethereum become a new hot spot of speculation and is welcomed. On the other hand, it also reflects Ethereum’s own development environment and future development potential.