Five Factors Behind the Ethereum Soaring Price

Ethereum just rose above $260, a increase of over 50% in the week and more than three times its December 2018 low of $82. From the perspective of market turnover and rising momentum, Ethereum almost completely restored to its October 2018 level. In fact, Ethereum is still the preferred public chain for developer. Here are our reasons why.

  1. THE ALTCOINS ARE PUMPING AFTER BITCOIN’S MASSIVE PRICE BOOST

Where Bitcoin leads, the altcoins will follow, and since Bitcoin leapt from $5,700 to $8,000 in a matter of a few days, the other altcoins are following suit – especially now the Bitcoin bull run is taking a breather.  Bitcoin has been surging since it passed the “Golden Cross” on the 22nd April, a massive bull sign when the 50 day moving average crosses above the 200 day moving average.

1.1

90-day correlation analysis of digital currency assets

Since the beginning of 2018, the whole market closely followed the trend of Bitcoin. At present, the correlation between  Ethereum and Bitcoin is 0.85, the trend of  Ethereum is highly linked with Bitcoin.

  1. LARGE CORPORATIONS ARE SUPPORTING ETHEREUM

Microsoft will now offer its customers to build Ethereum-based blockchain solutions on its Azure cloud platform, and Starbucks will use Azure and the Ethereum blockchain to track and benefit its coffee farmers. JP Morgan’s created Quorum, an enterprise version of Ethereum. There are also rumours of Samsung using the Ethereum platform and the possibility of an Ethereum derivative which is being considered by the CFTC (U.S. Commodity Futures Trading Commission).

As well as these large enterprises getting behind Ethereum, Mike Novogratz, a Bitcoin proponent, just gave a big endorsement of Ethereum. During the Ethereal Summit, the founder of Galaxy Digital Group said Ethereum should eclipse Bitcoin as a store of value.

  1. ETHEREUM IS BEING ACTIVELY DEVELOPED AND IMPROVED

Although Bitcoin has some really exciting layer-2 payment technologies being built around it, the core technology isn’t changing much. Plus after yesterday’s disruptionwith the Bitcoin Cash upgrade, any changes by the Bitcoin Core group will be extremely cautiously deployed.

By comparison, Ethereum is constantly improving, forking and developing. Its smart contracts and dApps are still relatively early in their life, and hundreds, if not thousands of companies are actively developing on the platform. Just yesterday, EDF, the fifth largest electrical utility company with a $33 billion market cap, launched its dApp on the Ethereum mainnet. Last year, Ethereum co-founder Joseph Lubin put his money where his mouth is staking $500k in a bet on the future of Ethereum dApps.

In a recent interview, Lubin also said he believes the Ethereum platform will become around 1,000 times more scalable within the next 18 to 24 months after a set of upgrades associated with Ethereum 2.0 have been activated.

1.3

The figure above shows that the number of DApps on the Ethereum chain is much higher than that on EOS and TRON. Ethereum is still the most preferred public chain for developers.

  1. NEW RESEARCH FROM FIDELITY SUGGESTS INSTITUTIONAL MONEY IS COMING

Fidelity, which hosts a digital assets division, ran a survey to find out how pensions, family offices, hedge funds, endowments and foundations feel about owning cryptocurrencies. The survey found that 47 percent of institutional investors said digital assets are worth investing in, and the same percentage said they appreciate crypto for being innovative.

Just as important is the fact that 46 percent of respondents like the low correlation between cryptocurrencies and other asset classes.

  1. THE CONSENSUS BULL RUN

The biggest crypto conference of the year – Consensus New York – just finished up yesterday and New York Blockchain Week is still in progress. Executives from Microsoft, IBM, JPMorgan, Nasdaq, Yuanyan gathered to discuss the condition of encryption and pay more attention to community innovation. This is a clearly positive factor. Except for last year’s bear market, the market rose in varying degrees between 2015 and 2017.Consensus brings a feel-good factor and renewed focus on the innovations in the crypto community as the movers and shakers get together to debate the issues of the day.

  • 44
Block
Add Reply
Feedback |

Good morning

Add Reply
expand

Support you

Add Reply
expand

Good afternoon.    

Add Reply
expand

support    

Add Reply
expand

mining     

Add Reply
expand

Nice sharing.    

Add Reply
expand

Come and support

Add Reply
expand

mining

Add Reply
expand

Come and support

Add Reply
expand

Come and mining

Add Reply
expand

Support   

Add Reply
expand

Mining  

Add Reply
expand

Support~

Add Reply
expand

Nice share

Add Reply
expand

Mining Support

Add Reply
expand

Thanks for sharing

Add Reply
expand

Good afternoon

Add Reply
expand

Support Landlord           

Add Reply
expand

support

Add Reply
expand

mining

Add Reply
expand

Good evening        

Add Reply
expand

Support and  mining          

Add Reply
expand

Nice sharing       

Add Reply
expand

Support you!          

Add Reply
expand

Mining

Add Reply
expand

Good evening         

Add Reply
expand

Come and support              

Add Reply
expand

support

Add Reply
expand

mining

Add Reply
expand
You should login to reply
You will reward to {{ username }}

Available Balance: {{balance}}

≈ $ {{usdtAmount.toFixed(2)}} (The reward commission rate is 10.0%)

New Favorite Bag

Add To Favorite You can create multiple favorites and classify the topics. Please select the favorites you want to add.
{{ favoriteBag.title }} {{ favoriteBag.favorites_count }}Topics

{{ text }} OK
fa-bars fa-arrow-up