TL;DR Breakdown
• Ethereum clings to being the second-largest cryptocurrency as regards capitalization.
• ETH is a success as a cryptocurrency.
In the crypto market, Ethereum just like many other currencies are increasing in value. This cryptocurrency has positioned itself as the second with the highest capitalization in the decentralized currencies chart. ETH can change the game for investors by increasing value, which would occur after a major upgrade.
In recent weeks many people have increased their interest in Ethereum. The capitalization of the cryptocurrency has created buzz, making traders think it will skyrocket during the year. Many forecasts on the rise of Ethereum could be true or just empty speculation.
Ethereum steps up as the second cryptocurrency
Although ETH consolidates as the second cryptocurrency by its capitalization, this does not assert how high its value will rise. Although the future of the cryptocurrency is not the most certain currently, its value has reached $3300 after a recent rally. DeVere Group founder Nigel Green thinks Ethereum will hit $5000 in the next few days.
Green defends his theory by seeing the 35% uptrend that the cryptocurrency has maintained. So far, in 2021, the value of Ether has gathered over 340% in its price. This Ether growth has been exponential when compared to other cryptocurrencies.
The Ethereum success
The factors that have made Ether successful in its capitalization can be:
• Interest in an ecosystem for decentralized finance.
• The support of the European bank for investments.
• The NFTs growth is unique.
• The new update will eliminate errors, such as deflationary currencies and high fees.
Because of these turning points, not surprisingly, ETH is becoming a trend. The rave about investment in Ethereum is massively increasing, reaching new investors.
The Ethereum update is close to arriving, prepared specifically for June 2021, but it is not known with certainty when it would be deployed. This update, for many traders, means a turning point for the cryptocurrency.
Ethereum soared when the Blockchain network was not ready for this event, leading to an increase in transaction fees.
Blockchain developers, like Vitalik Buterin, understood that they needed to update the cryptocurrency. So they have planned that EIP-1559 will be activated in July. This improvement will reduce the ETH gas fees, besides correcting key errors.
ETH is not spared from controversy because this update could hit the mining community hard. Miners will have less profit per transaction which would cause this sector to shrink. Although the changes are excessive for ETH mining, this will undoubtedly attract new investors, which will balance the market.
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