Ethereum, the second most popular cryptocurrency, is regularly studied to see how the price can fluctuate and what may cause that to happen. Consistently since it was released, however, Ethereum has seen a steady rise in value, with investor confidence growing commensurately.
With the success of big cryptocurrencies like Ethereum, people experience a growing interest in smaller coins, wanting to get in early and see returns on their investments. Finance sites including Forbes, Yahoo, and Binance list the Solana price today, with more investors watching its chart.
In this article, let’s run through some key factors in the rise and development of Ethereum and talk about what can be learned for the growth and development of other cryptocurrencies.
Recent Ethereum Surges
Ethereum experiences surges and falls quite regularly, as with any currency. However, it’s particularly notable that, according to Forbes and Binance, a surge within March 2024 went beyond $4,051! This goes beyond the previous heights of January 2022, building investor confidence in how the coin will continue to grow as time goes on.
Something that has caused a recent surge in Ethereum prices is the fact that the US Securities and Exchange Commission (SEC) has approved Ether exchange-traded funds (ETFs). While this is a lot of jargon at first glance, what it means is that the utility of Ethereum on the open market throughout the US has increased greatly. It can now be packaged alongside other investments to create a more reliable and more comprehensive fund that Ethereum alone may offer. In turn, it’s likely that Ethereum will see an increase in use on the US market.
From this, developers can learn that a key element of engaging your cryptocurrency is ensuring it can interact on the same scale as other funds and investments. Ensuring that the backend tech for your coin is top-notch will allow investors to buy and sell assets with much greater ease.
Ethereum Nears $4,000
This element of Ethereum’s rise is somewhat in the past, but it’s a key point that must be understood in order to apply the lesson to other currencies.
Throughout 2023, Ethereum spent a lot of time hovering around the $4,000 mark without truly exceeding or undercutting it too much. This meant that the overall stability of the coin was accepted and understood much more widely, which, to some extent, led to the creation and acceptance of the Ethereum ETF.
Pair this acceptance and understanding with the acknowledgement of Ethereum’s ties to Bitcoin: as Bitcoin rises and falls in price, so does Ethereum and a wide range of other cryptocurrencies. As such, the market can be studied, and conclusions and predictions can be generated. As time goes on, the science for these predictions only improves, especially with the advent of Ethereum ETFs, which allow for more integration with the conventional economy.
Thus, the point becomes much more clear: stability and predictability are two huge drivers of ongoing economic twists and turns. It’s all well and good to insist on the security and safety of using crypto wherever possible, but until that safety and security can be backed up with historical evidence, the establishment is unlikely to accept it, as frustrating as that might be.
The Dencun Upgrade
As time goes on since Ethereum and other cryptocurrencies were launched, the technology that backs them up improves and increases in capacity. As such, there are regular boosts and upgrades throughout different currencies, such as the 2024 Dencun upgrade.
This upgrade is quite a simple piece of software in a lot of senses, but it’s also very powerful. Essentially, the concept is straightforward: the upgrade allows for danksharding. This is a method by which the ETH blockchain can be broken up into a number of smaller and more manageable segments called blobs. These segments retain the decentralized nature of Ethereum while also ensuring being less computationally intense than demanding every user store a copy of the entire blockchain.
In more practical terms, this means that the network’s capacity will increase overall, and transaction fees will decrease: two powerful improvements.
The improvement of network capacity is particularly vital as more and more people are using and exchanging Ethereum over time. As such, years-old software and hardware involved in the chain may not be able to cope with continuing additions. This could mean that certain individuals simply can’t interact with the blockchain while others are capable of interaction, but only at such a slow speed that the interaction becomes a bit meaningless: the currency may have changed in price by the time the transaction is completed.
From the Dencun upgrade, developers can learn one main thing: it’s important to keep your cryptocurrency as functional as possible. While extreme decentralization and anonymity are ideal for any currency, they can raise the barrier of entry to the currency. If you hope for general acceptance of your project, you need to make sure that more than just a handful of people with supercomputers can access it.
Ethereum is a large and complex cryptocurrency that’s been changing and growing for a long time. WIth continuing upgrades, each change and boost offers a new lesson for any developers looking to create within or alongside that blockchain in particular.
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