It is almost no news that the Ethereum price dropped drastically between May and this month. About 60% of the market assets were affected, which created a rising fear in investors.
Etherum being an independent financial sector, investors can hold no one responsible for the drastic decrease in its price. The market trend of Cryptocurrencies is highly fluctuating, and traders are used to the sudden change in price. However, it is more reasonable if the shift in Ethereum price does not hurt its investors. A sudden decrease is bearable to some, while others may not bear it. Hence, leading to a shortage of investors.
There are several reasons this article supports a rapid increase in Ethereum price. Read further, and discover the lasting solution to the present and future fear of investors.
Ethereum as Lead Magnet for Digital Currencies
Ethereum first came into the picture in 2013 and was finally launched in 2015. Being the closest competition to Bitcoin, its developers provided a competitive and better mining strategy. Ethereum introduced a faster and more secure transaction verification means, known as Proof of Stake, in 2020.
The ETH2 mechanism involves a lesser amount of energy during the mining process. Thus, reducing the cost of production. Since its introduction, investors have enjoyed a larger transaction scale and faster delivery time than the Proof of Work mechanism in Bitcoin.
Ethereum is the real deal, with its advanced scalability. Its developers work towards creating a better platform, providing more accessible communication between traders. However, Ethereum’s price has been meager recently, which is the same as other cryptocurrencies.
An active investor understands the market trend and can continually stake money in digital currency. Apart from expertise, cryptocurrencies are recorded to have a low-price rate at their initial phase until the prices multiplied. Since ETH tokens increased from $1000 to $4000 between 2020 and the beginning of this year, the fall in price is one of the market shortcomings that poses no threatening effect.
The Bounce Back of Ethereum Price
Research shows that many investors are optimistic about the return of ETH, thereby encouraging new investors to keep buying assets. However, the question remains, how long can they keep the hope alive? Since the cryptocurrency market is highly volatile, it is not easy to predict the exact amount to expect in the nearest future or years to come.
Ethereum’s price should rapidly soar since it is the second-largest cryptocurrency.
More so, it provides maximum security against distributed-denial-of-service (DDoS) attacks than its many counterparts. Hence, there is no doubt many investors acknowledge it as a platform for a promising future. The aim is to enable digital currencies as a medium of transaction, which has not shifted, except for the change in the finance market.
Often, Ethereum is the first choice that comes to the mind of many investors when considering a real-world asset collaboration. It has been reported how investors are starting to use Ethereum as a return for loans and insurances.
The introduction of a gas fee in Ethereum mining operations contributes to its high value. Hence, it is one of the digital currencies with the highest market value. Although cryptocurrencies are decentralized and have no entity controlling their operations, big investors can navigate their way through and instead keep the market afloat rather than crashing.
Ethereum’s price can indeed hike as input from world influencers. The market unit may be low presently, but it never stays low for many years.
One of the significant cryptocurrency influencers is Tesla CEO Elon Musk. Tweets from him have contributed to a sudden increase in currency price. Nevertheless, investors are anticipating cryptocurrencies’ price to soar while many hodl their coins.
There are several reasons for Ethereum price to soar, and as an investor, you have no reason to fear losing your money. Although it involves some risk, you can give it a critical thought by either going for the bearish or bullish market trend. You can stack on prediction of trading on an increase or reduced market price in the future.
If you are not sure about the future predictions of Ethereum prices, you can convert your digital coins to acceptable physical currencies, such as the US dollar. To achieve this, you need a trading platform like Bitvavo.com, free of internet fraudsters and optimum security.
Internet security is a threat to many crypto traders today, and the ability to secure digital assets is of utmost importance. Trade well and choose to become an affluent investor today.