Ethereum and the cryptocurrency are on remarkable growth trajectories.
The cryptocurrency known as Ether, which transacts on the Ethereum blockchain, is the second-largest in the space after Bitcoin.
“According to data presented by Trading Platforms, the Ethereum market cap soared by a staggering 1300% year-over-year and hit over $280bn last week, which is twice the growth rate of the world’s leading cryptocurrency, Bitcoin,” according to the research firm. “The year 2020 was a fantastic year for all digital coins, as investors flocked to cryptocurrencies in times of economic uncertainty caused by the pandemic. However, Ethereum witness (sic) much larger growth than other crypto coins.”
More to Come for Ether
Those data points emerge as the first Ethereum exchange traded products are coming to market.
Capping out a week of firsts for cryptocurrencies, Canada approved three Ethereum ETFs last week, which would be the first in the world to hold Ether tokens.
Proposals from Purpose Investments, CI Global Asset Management, and Evolve ETFs all were approved by the Canadian financial regulator and are to begin trading Tuesday, April 20th.
“In April 2020, the Ethereum market cap stood close to $19bn, revealed the CoinMarketCap data. Over the next six months, this figure surged by 126%, reaching $42.8bn in October. The strong growth continued throughout the fourth quarter of 2020, with the combined value of all Ethereum coins jumping to $66.2bn in December,” according to Trading Platforms.
What gives Ethereum an edge against Bitcoin is its implementation of smart contracts, which allows developers to run decentralized applications, or dapps, directly on the Ethereum blockchain. Although the possibilities for smart contracts are nearly endless, a few dominant use cases have emerged.
Additionally, the usage case for Ether is growing.
“Besides a surge in market capitalization, Ethereum also witnessed a significant increase in daily transactions worldwide. In April 2020, the average number of daily Ethereum transactions amounted to around 650,000, revealed the BitInfoCharts data. In August, daily transactions hit a one-million benchmark for the first time and continued rising,” notes Trading Platforms. “During the last three months, transactions per day floated around 1.1 million and then jumped to over 1.2 million in April, an 84% increase year-over-year.”
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.