HomeCryptocurrency NewsNot Bitcoin but this cryptocurrency has surged 500% this year. Do you own it?

Not Bitcoin but this cryptocurrency has surged 500% this year. Do you own it?

Ether, the world's second-largest cryptocurrency has risen 500 percent this year. It scaled an all-time high of $4,400 Thursday, after rising over 10 percent in 24 hours. Here are some factors fuelling this rally

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By CNBCTV18.com October 29, 2021, 5:24:19 PM IST (Published)

Not Bitcoin but this cryptocurrency has surged 500% this year. Do you own it?
Ether, the number two cryptocurrency and the native coin of the Ethereum blockchain network, surged over 10 percent Thursday to attain a new all-time high (ATH) of $4,400. However, it has seen some correction since then, it is still trading at $4,331 on CoinMarketCap at 17:10 IST. This is close to its previous ATH of $4,379.62 in May.


The new high for Ether has sustained a rally that saw the coin gain 46 percent this month and an impressive 497 percent YTD. But what is the reason behind the impressive rally of this cryptocurrency?

Speculation of Ether ETF

Many investors believe an Ether ETF on the ProShares Bitcoin Strategy ETF lines in the US market is likely to take place soon. What makes this a strong possibility is the likelihood of the Bitcoin spot ETF being next on the Security and Exchange Commission’s (SEC) table for approval.

Before SEC approves a Bitcoin spot ETF though, it will be looking out for more nods for Crypto futures ETF. Considering this criterion, the Ether futures ETF is, perhaps, the strongest candidate.

The coming of Ethereum 2.0

Another important factor that has made Ether rally strongly over the past year is Ethereum 2.0, which is under implementation. On Thursday, Ethereum saw the successful implementation of Altair, a change in protocol that led to its transformation into Ethereum 2.0.

The network is on course to change from ‘Proof of Work’ to ‘Proof of Stake’. Miners will have to solve a puzzle for all transaction validation as part of ‘Proof of Work’. This could be time-consuming and more expensive per transaction. In contrast, ‘Proof of Stake’ is an automated process where miners will only need to show their coin holding to validate the transaction/s.

Many new coins such as Solana, Cardano, and Polkadot have performed impressively over the past year because of their faster networks, less transaction time, and low fees. However, Ethereum has shown potential to be the world’s second most important blockchain network over the period.

Ether’s strong fundamentals

Despite all the competition and challenges Ether faces, it is still one of the most robust and popular networks. It hosts about 3600 decentralized apps of popular NFT marketplaces and DeFi services, compared to about 400 of the nearest rivals.

After Ethereum 2.0 is available, Ether can compete with new coins that leverage new technologies and experiences of pioneers such as Bitcoin and Ethereum. Ethereum 2.0 is expected to be available sometime early next year.

Summing up

Ether’s consistent rally over the past months syncs well with the overall sentiment in the crypto trading space. October saw Bitcoin reaching a new ATH close to $67,000 level. On Thursday, after hours, Ether, Bitcoin, Solana, and Dogecoin also witnessed impressive gains.




Also Read | Take a look at the adoption of cryptocurrency in major economies around the world




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