The ether cryptocurrency that runs on the ethereum network has been in the news for the wrong reasons lately, as the problem with Parity multi-signature wallets has captured headlines. However, a number of analysts now believe that the currency could be ready to break more records, after reaching another new record high price.
One of the people who have made a bold declaration is billionaire fund investor Mike Novogratz. The former Fortress Investment executive said that ether looks ready to “move to new highs”, adding that there is a lot of “good news on the horizon”.
He based this opinion on issues as such as the interesting new developments being worked on by start-up such as ConsenSys, which builds decentralised applications and other digital currency tools.
Novogratz also said that cryptocurrencies such as bitcoin and ether could soon enter the mainstream, as big financial companies begin to offer products based on them. He called this the “institutionalisation of this space” and said that making investing in ether this easy is going to make its price “go much higher”.
An important development in the last few weeks has been a big increase in the volume of ether being traded. This has been largely down to increased volumes of trading in the South Korean market.
The issues in this Asian country began in October, when the government banned domestic initial coin offerings. This led to demand for digital currencies dropping for a period but it is now back up to a healthy level again.
South Korea Represents a Third of Global Market
Indeed, the market in South Korea is now so buoyant that it accounts for over a third of global ether transactions just now. This enormous level of activity has seen the Asian country over-take the US as the world’s leading country in terms of ether transactions.
In terms of price, the digital currency has just made an impressive surge of 8% in just 24 hours, shooting up from $325 (£245) to $358 (£270), which is still its price at the time of writing.
Of course, it was not long ago that $300 (£226) was seen as the resistance point that ether simply couldn’t get past. Even the success of the Byzantium hard fork didn’t push the price past that point, leading to some concerns that ether might have reached its high point.
Yet, the recent price increases have shown that there is now a greater level of confidence in the future of ether. This appears to show that people are now comfortable with the stability of the ethererum network, while a range of new scaling solutions have raised the feel-good factor.
Among the most exciting solutions being talked about just now is Casper. Indeed, Vitalik Buterin – who is the co-founder of ethereum – revealed that they have had investors asking if Casper and sharding will have ICOs to launch a new coin.
Buterin said that comments like this “makes me cry”. The developer has mentioned in the past that he is opposed to the idea of open-source scaling projects carrying out ICOs.