The price for Ether which is the second largest cryptocurrency by way of market capitalization crossed the $500 mark on Wednesday morning. Even though Bitcoin has garnered much of the attention all year round, Ether has also been making impressive strides. The cryptocurrency has seen a significant increase in value by more than 5,700% since the start of this year, when it traded at a value of less than $10.
Ethereum crossed the $400 mark back in June, but it subsequently witnessed a slump afterwards, a slump that lasted about five months. This new price rally has been long overdue but the speed of price appreciation has gone way beyond what analysts predicted.
It has been previously predicted that ETH will attain a value of $500 by January, 2018. However, this price point was reached and surpassed on the morning of Wednesday 29th November 2017.
The price increase can be possibly attributed to the CME Group’s plan to begin trading in Bitcoin futures – the news about this new trading product has triggered a rally which has seen bitcoin cross the $11,000 mark. A lot more altcoins have also witnessed an appreciation of their prices.
Another school of thought also has it that the increase in Ethereum’s price can be attributed to a shift in psychology. In June when ETH touched $400, bitcoin was priced around $2,500 – backed then, it seemed Ethereum was expensive in comparison to bitcoin. But with Bitcoin now smashing the $10,000 and even crossing $11,000, the stage seems just apt and has helped in catalyzing ETH’s value above $400… up to $500.
While bitcoin serves as the poster coin for the crypto world, Ethereum has been taking position as a platform for the future. Ethereum enables developers to interact with its blockchain in innovative ways that bring some real solutions to real life problems.