Ethereum—the world’s second largest cryptocurrency by market cap and the number one competitor to bitcoin—has struck gold over the weekend and has seemingly hit a new all-time high exceeding $3,000 per unit.
Ethereum is Trading for More Than $3K
Ethereum is arguably one of the biggest and most popular coins around. While it may not have the market value of bitcoin or the size and scope of its predecessor, it is still a very important coin for many reasons, the biggest one arguably being that it boasts smart contract capabilities. As a result, it has seemingly become one of the most popular networks to build new coins and decentralized applications (dapps) on, though this popularity has come with a downside.
This amount of attraction has brought a lot of new developers to the Ethereum table, many of which have sought Ethereum and only Ethereum-based help in establishing their projects. This has led to excess traffic, which has caused problems for the ETH network including high gas fees and slow transaction times. Thus, Ethereum 2.0 has been introduced, which is set to fix a lot of the scalability problems that co-creator Vitalik Buterin says have plagued the network for some time.
Last week, the asset rose by more than 30 percent, thereby leaving coins such as BTC in the dust. Fahad Kamal – chief investment officer at the U.K. private bank Kleinwort Hambros – stated in a recent interview that the latter coin is now in danger of potentially falling behind should Ethereum continue its present bull run. He explains:
The cryptocurrency space today looks very similar to the internet space of 1997. In 1997, we thought Netscape Navigator was by far the most advanced and sophisticated browser and there would never be anything to compete with that, and obviously here we are. Netscape is long gone. In ten years, I have no doubt that blockchain technology is going to be a very serious force in our lives. I have much, much less conviction or faith in whether bitcoin will be around that long. There are other cryptocurrencies… which are arguably much better in their construction and in their underpinnings. Ethereum, for example.
There is a serious battle going on between bitcoin lovers and Ethereum fans. Believers in the former claim that BTC is the best store of value and that the latter has no place alongside their “baby,” while ETH believers say that bitcoin is out of date and that its blockchain technology does not even compare with the abilities of Ethereum.
Could Things Get Bigger?
With this latest bull run, Nigel Green – chief executive of deVere Group – has every belief that Ethereum could hit a price of $5,000 in the coming months. He states:
Ethereum can be expected to significantly dent bitcoin’s market dominance over the next year and beyond.