As the world’s second largest cryptocurrency after Bitcoin (BTC) in terms of market capitalization, Ethereum has managed to attract lots of attention from around the world. However, before you decide whether or not you should buy ETH, it’s essential that you fully understand ETH price history, factors affecting the price, its price prediction and exchange.
Brief Background about Ethereum
ETH can be purchased at exchanges and used to pay for products and services at most merchants that accept payment in digital currencies. Additionally, the cryptocurrency is used to pay transaction fees and for computational services when using the Ethereum network.
Ether is mined in the same way as bitcoin. You set your computer to attempt to solve the question present in a particular block in the blockchain. Once you answer correctly, you get paid ETH.
Nonetheless, the main goal of Ethereum is to be something more than a coin. After being disappointed by how the blockchain technology was being underutilized by bitcoin, Ethereum developers set out to take the blockchain to the next level.
ETH Price history
Ethereum has been an impressive force in the markets—and in just three years, it has managed to bring about a number of changes. While a number of people see Ethereum as a platform for development, a large number of people consider the digital currency token like a smart investment opportunity.
Let’s take a closer look at ETH price history over the years.
Eth price history chart (USD)
Eth market cap history (USD)
Eth trade volume history (USD)
The coin’s price has had several ups and downs over the years. While it has been considered to be a ‘stable’ coin when compared to other altcoins in the markets, Ethereum’s growth has been rapid, especially in recent times. Nonetheless, nothing is permanent on the crypto market and the ETH price has gone through a number of fluctuations. Here’s an analysis of ETH price over the years.
In 2015, Ethereum got listed on major cryptocurrency exchanges at round august. The coin’s price started trading at close to $2—and crossed $3 for a brief moment. However, it later flattened and closed the year at $0.9.
In 2016, ETH price surged from $0.9 to an all-time high of $20.5 in mid-June. Unfortunately, a hack worth $50 million resulted in the price collapsing—and eventually dropped to $8 at the end of 2016. This was also the year when ETH and ETC forked, which resulted in a major rally for ETH.
2017 was a landmark year for the digital currency which saw it witness a major surge in popularity over the course of the year. At the beginning of 2017, ETH price was around $8, but it later surged to reach an all-time high of $480, while closing the year at $740 in December. The coin’s rally continued into 2018 when it hit $1,360 in early January.
2018 has also been a good year for the platform in terms of massive adoption, but this is yet to be reflected in the coin’s price. At writing time, the coins price is trading at $206 after gaining 1.19% in the last 24 hours.
ETH price exchange
Factors that determine ETH price
Ethereum’s primary value and core philosophy are that it’s a platform made for having a multitude of different types of applications developed on it. All development is decentralized and does not depend on a single entity to hold data. The more DApps developed the higher the value of Ethereum could be, which would lead to a cascading effect causing more DApps to be developed.
Further, other basic factors that affect ETH price is the demand and supply, which is pretty much the same for every digital coin. ETH price depends on the demand for the currency. The more the number of people who invest in ETH, the higher its price would be. Once people begin to sell ETH in larger number, ETH price would come crashing down.
Additionally, Ethereum’s existing supply as at now is about $100 million ETH. Nonetheless, there have been talks in the Ethereum community about introducing a hard cap for Ethereum’s supply-a hard cap of 120 million and 144 million ETH has been proposed but it’s yet to be finalized.
ETH price prediction
Digital currencies have a well-deserved reputation for volatility, and a look back at a graph charting the performance of ETH over the past year will show substantial fluctuation. With this in mind, it’s extremely difficult to make an accurate prediction of where the price of Ethereum or any other cryptocurrency is headed in the future.
Just recently, Tom Lee predicted that ETH price will go up to $1,900 by the end of 2018. Lee further referenced the historical performance of Ethereum, citing that the times when the altcoin “underperformed peers by two standard deviations,” the price trend saw a subsequent reverse.
Moreover, here are some factors that may actually propel ETH price to such levels.
- DApps- a large number of DApps have already been deployed on the Ethereum network, these include: Golem, prediction markets Augur, OmisGo an exchange and payment platform and the decentralized cloud platform Storj. The success of these DApps is a vital factor that will determine the coin’s price, as will the creation of new applications on the platform.
- ICO popularity– Ethereum is popular among ICO startups, many of which allow users to purchase new tokens using ETH, potentially increasing ETH demand.
- Use cases- Ethereum has quite a huge number of user cases in the real world, and these could drive massive growth. The platform allows developers to build and deploy DApps across a diverse range of industries.
- Accessibility- being the world’s second largest cryptocurrency, Ethereum is readily available across a wide range of exchanges. This makes it easy for investors to access and increases Ethereum’s credibility in the eyes of those outside the crypto community.
ETH price has experienced a number of ups and downs over the years, thus may be hard to predict its exact price in the coming years. However, looking at its history and the factors that may lead to a massive rally, it might be okay to say that ETH price will surge to great highs in the future.