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Ethereum

A $1,000 Investment in Ethereum Five Years Ago Would Be Worth $195,000 Today

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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.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Ethereum

Ethereum Finally Upgrade From Proof of Work to Proof of Stake

Ethereum, the world’s second most capitalised cryptocurrency by capital, has successfully transitioned from Proof of Work (PoW) to Proof of Stake (PoS).

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Ethereum, the world’s second most capitalised cryptocurrency by capital, has successfully transitioned from Proof of Work (PoW) to Proof of Stake (PoS).

The transition popularly known as “Ethereum Merge” is a historic accomplishment that will significantly reduce energy usage and also reduce gas fees attributed to the process of validation under Proof of Work.

Exactly at 7:59 this morning, Vitalik Buterin, the Co-Founder of Ethereum announced the success of the transition via his official Twitter handle.

He said “And we finalized! Happy merge all. This is a big moment for the Ethereum ecosystem. Everyone who helped make the merge happen should feel very proud today”

Up until now, ETH, the token of Ethereum, was generated by Proof of Work which alternatively means “mining,”. It is an energy-intensive process by which individuals directed huge amounts of computer power at difficult-to-solve puzzles.

Additionally, generating Ethereum through Proof of Work is not just difficult but also consumes a lot of energy to power computers that race to solve complicated math equations to validate transactions.

With this transition, Ethereum will therefore be generated by individuals and entities pledging large amounts of pre-existing Ethereum. 

This means that Ethereum users will need to make a pretty hefty investment upfront to authenticate transactions. However, Proof of Stake is expected to be much less energy intensive.

Before now, Ethereum claimed its carbon emission is believed to be at par with Singapore and its total energy consumption is comparable to the Netherland. This has therefore earned Ethereum some criticism, especially from environmental activists. 

The merge is however expected to lower Ethereum’s carbon footprint by over 99%, which could make the platform more attractive to environmentally conscious investors.

Ethereum was conceived in 2013 and launched in 2015 by a programmer named Vitalik Buterin and a host of others which include Charles Hoskinson (Founder of Cardano Network), Anthony Di Lorio and Joseph Lubin. It has thereafter grown to become the second biggest cryptocurrency after Bitcoin. 

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Ethereum

Ethereum Merge: Ethereum Appreciates by 4% Ahead of Merge

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Ethereum, the world’s second most capitalised cryptocurrency appreciated by 3.87% on Tuesday despite the uncertainty surrounding the Ethereum planned merge later this month.

Ethereum is scheduled to undergo a merge that would reshape the future of the digital asset from a project powered by miners through a process known as Proof of Work (PoW) to Proof of Stake (PoS) which is widely presumed to consume lower energy and subsequently, lower gas fees.

With $198.971 billion market capitalisation and 400 decentralised applications, the world’s largest protocol could be exposed to certain level of risks not anticipated in its planning stage given its current size. Therefore, investors and traders of Ethereum are generally expected to be cutting down on their exposure or holding by now ahead of September 15 planned merge.

However, on Tuesday the price of the token started appreciating. Suggesting that many retail traders looking to take advantage of the Ethereum merge have started increasing their holdings, a situation that could hurt their pockets and entire portfolio if the merge goes wrong.

Year-to-date, Ethereum has lost 54.77% of its value. However, in the last 24 hours, the coin gained $56.33 to $1,608.83 a coin.

Investors transacted Ethereum worth $2.62 billion in 1.09 million deals in the last 24 hours while the average fee paid per transaction was $1.94.

Since its inception, it has risen to an all-time high of $4,865.57 before plunging to as low as $880.93 a coin when the Luna-triggered bearish trend commenced. The total Ethereum supplied to date is 119.64 million.

Commenting on the Ethereum merge, the CEO of Bitcoin White Rock, Andy Long, said the Ethereum merge will force existing Ethereum PoW miners to seek other coins still operating with PoW to protect their investments.

“Hash rate will flow to alternative GPU PoW coins, and many miners will simply give up and try to sell off their farms of cards,” he said.

“Some miners will try to sell their High-Performance Computing (HPC) or GPU cloud services and will likely fail since there’s too much capacity chasing a limited amount of demand,” he added.

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Cryptocurrency Turnover Increased by 93% in Q1 2022

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According to Capital.com quarterly report, cryptocurrency turnover increased by 93 percent in the first quarter of 2022.

As shown by trading platform Capital.com, the Ether (ETH) to the United States dollar (USD) combination attracted the most traders from January to March 2022. The Dogecoin (DOGE) to USD pair was held by the most significant number of traders in 2021, according to the report. However, for the first time in the trading platform, the ETH/USD pair has seized the top spot for most traders.

The report showed that crypto turnover increased by 93 percent throughout the quarter. Despite the optimistic numbers, the report acknowledges that the increase in revenue does not reflect broader market trends because the figure was attained due to a few single-day volume surges.

The larger market is currently disinterested, according to Capital.com. The Bitcoin (BTC) slump from November to January affects retail traders’ interest in crypto, according to Capital.com’s head analyst David Jones. Crypto traders, according to the analyst, are “herd creatures” motivated by momentum.

Following a spike in investor involvement in January, the following months saw a drop. The number of digital asset traders on the platform fell by 16 percent in February. The following month, the number fell by another 10%.

On Monday, the price of ETH rose past $30,900, bringing it closer to the $2,000 barrier. Analysts cautioned, however, that despite the rebound, the prices’ upward trajectory may be less than the mid-year performance of 2021. On the other hand, some analysts believe that over the summer, the price could rise to $2,700.Meanwhile, the Ethereum Ropsten testnet is transitioning to a proof-of-stake (PoS) consensus.

Tim Beiko, an Ethereum engineer, announced that on June 8, the Ropsten testnet will combine with the new Ropsten Beacon Chain, which was deployed on Monday. Before the Ethereum mainnet migrates to PoS, two additional testnets, Goerli and Spolia, will make the switch.

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