Home » Ethereum News » Why is the Ethereum Price Rising?
Ethereum-price-rising

Why is the Ethereum Price Rising?

Over the last few weeks, Ethereum has soared a whopping 100% in price, thanks to a timely combination of rising institutional interest and an impasse with users of rival cryptocurrency, Bitcoin.

A lot of the recent increase in price is down to a few different key components.

1 – Bitcoin ‘Buzz’

Although Bitcoin is the original cryptocurrency, it is already established and costs a lot of money to purchase even one coin. Ethereum on the other hand, is becoming more and more established, but has still kept its relatively low price. This has become very attractive for Bitcoin investors who are now taking their earnings out of Bitcoin and putting them into Ethereum.

In fact, this is happening so much that almost half of all Ethereum purchases are from the Bitcoin currency.

2 – Ethereum Has Powerful Friends

Over the past year, Ethereum has collected various well known industry interest. Companies such as Microsoft, JPMorgan Chase and CME Group, among others, have all invested or moved into the Ethereum domain.

These heavy hitters have given Ethereum a lot of credibility, which is causing more stability – and we all know markets love a bit of stability.

3 – Bitcoin’s Network Capacity Limits

In order for any type of new currency to flourish, it needs to be able to be used to trade for goods and services. Bitcoin is struggling with this ability, being closer to capacity than ever. This can cause large delays in transactions, meaning it is becoming more cumbersome to not only buy Bitcoin, but also to then use it for your own purchases/trades.

Alongside this, fees are rising – with the ones that offer higher fees getting stronger priority. This limitation is down to the size of each block in the block chain, currently sitting at only 1MB. There has been a lot of debate in the Bitcoin community as to what needs to be done, but this is causing issues and Ethereum is gaining ground because of this.

 

Arnold Potts

I'm a cryptocurrency fanatic, living and breathing all Ethereum & Bitcoin News. Working hard to make the world aware of what is achievable with decentralised currency. Currently working on CoinFiend and BestCrypto.