Ethereum, the world’s second most capitalised cryptocurrency, rose by 2.01 percent in the last 24 hours to extend its 2021 returns to 169.76 percent.
Ethereum rose by $31.60 or 2.01 percent from $1,893.21 per coin it opened to $1,922 per coin on Friday.
Investors traded Ethereum valued at $11.09 billion in 1.30 million transaction count at an average transaction fee of $21.44 in the last 24 hours.
The world’s second most valued cryptocurrency has enjoyed a huge surge in capital inflow since Bitcoin took off in the final quarter of last year.
Ethereum was trading at $390.87 per coin as of August 2020 when Investors King predicted its long-term bullish run for the coin.
On January 4th, 2021, it broke the $1000 resistance level and since then it has risen by 97 percent to take its total return since January 1st, 2021 to 170 percent.
Institutional investors are behind Ethereum’s rising value, according to various cryptocurrency reports.
“Since Grayscale Ethereum Trust (ETHE) just bought over 197,890 ETH worth $344 million on behalf of its investors in a span of two weeks, we are witnessing an influx of investments in ether only a few months after bitcoin’s institutional influx,” F2Pool’s Mao told CoinDesk.
Also, the surged in demand for Defi, Decentralised Finance, powered with the Ethereum blockchain is aiding Ethereum bullish run. Presently, the total value locked in Defi stood at $41.8 billion. Twice of its January value.
“Ether approaching $2,000 could be seen as validation of all the dapps and use cases that have blossomed over the years – from DeFi to NFTs,” OKCoin’s Lau said, referring to nonfungible tokens. “It is also benefiting strongly from bitcoin’s increased adoption. The ratio of ether to bitcoin remains at 2%-4%, a range that has persisted since September 2018.”
Ethereum Adds Over 38 Million New Addresses in 2021, 22% of All Ever Created
The Ethereum network has recorded a surge in popularity, with more investors aiming to own part of the second-ranked cryptocurrency. The interest is highlighted by the number of unique new addresses created in 2021 alone.
Data acquired by cryptocurrency trading simulator Crypto Parrot indicates that an average of 149,843 new unique Ethereum addresses has been created daily in 2021 on a year-to-date basis. The highest number of new addresses was created on June 5th at 332,094. So far, in September, a total of 1,389,999 new unique addresses have been created.
Elsewhere, by September 2021, 38,256,193 new Ethereum addresses were created in 2021, accounting for 22.59% of all ETH addresses ever created to date. In general, the cumulative number of Ethereum addresses to be created since inception stands at 169,296,775.
Impact of Ethereum network upgrades on new addresses
Currently, the Ethereum network is undergoing upgrades geared towards transitioning from the proof-of-work protocol to the proof-of-stake system that is energy efficient.
The upgrades play a key role in determining the number of new Ethereum addresses created, and the report takes note of this factor. According to the research report:
“The drop in new addresses comes at a point the Ethereum network upgrade is expected to create a deflation over time as it modifies the auction process. Furthermore, with Ethereum transitioning to the proof-of-stake protocol, the network will likely experience an influx of new users who want to cash in on the staking.”
The new address follows the recent cryptocurrency bull market that saw Ethereum surge in value to a new all-time high price. However, the addresses have plunged in correlation with the general crypto market.
Ethereum to Exceed Bitcoin’s Value Within Five Years: deVere CEO
A $1,000 Investment in Ethereum Five Years Ago Would Be Worth $195,000 Today
The increasing number of investors continues choosing digital coins as an investment asset. Some of them invested in cryptos much earlier and watched their investments grow over time, despite the turbulences the crypto space witnessed throughout the years. As the world’s second-largest crypto coin by market cap, Ethereum proved an excellent investment choice with an impressive five-year return rate.
According to data presented by BlockArabia, a $1,000 investment in Ethereum five years ago would be worth nearly $195,000 today, bringing a whopping 19,400% gain.
Ethereum’s Price Soared 195 Times Since July 2016
As the world’s second-largest cryptocurrency after Bitcoin, Ethereum was released on July 30, 2015, and priced at $0.75. By the end of July next year, its price surged by 1,500%, already making him a successful investment.
Assuming an investor bought $1,000 worth of ETH on July 20, 2016, they would have picked up 83 coins priced at around $12. Three years later, in January 2018, Ethereum’s price soared to $1,396, turning that $1,000 investment into $115,800.
After a deep price fall in the following months and throughout 2019, ETH price recovered in 2020, as the entire crypto market boomed amid the COVID-19 crisis. Between January and December 2020, ETH price surged by 411%, rising from $144 to $737.
However, after an outstanding performance throughout the last year, Ethereum’s price exploded in 2021. Between January and March, it soared by nearly 150% to over $1,800 and continued rising. On May 12, it hit an all-time high of $4,297, turning that $1,000 investment into $356,650.
Although ETH’s price dropped significantly over the last two months, reaching $2,347 this week, that is still 195 more than its price from July 2016.
Ethereum Market Cap Surged by 233% YTD, 7x Bigger Increase than Bitcoin
Since the start of the cryptocurrency phenomenon, Ethereum and Bitcoin have been the most digital coins in the crypto space. However, unlike Bitcoin, Ethereum’s market cap soared in 2021, despite the recent crypto price crash.
After an outstanding performance throughout the last year, Ethereum’s market cap surged by more than 400% in the five months of 2021, rising from around $84bn in January to $442bn in May.
After the crypto price crash, Ethereum’s market cap almost halved in just three weeks, falling to $222bn in the third week of May.
The CoinMarket cap data this figure rose to $274.5bn this week. Although significantly lower than an all-time high from May, this still represents an impressive 233% increase YTD, which is seven times more the growth rate of Bitcoin.
Statistics also show ETH was the third most-traded crypto in the last 30 days, with a monthly trading volume of $517.8bn.
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