Bitcoins’ success paved the way for the development of altcoins (alternatives for Bitcoin). Among them is Ethereum, the second-largest cryptocurrency after Bitcoin. Similar to Bitcoin, Ether has hit a new all-time high in recent times. The blockchain that hosts ethereum has played a significant role in the takeover.
Ethereum hosts decentralized finance (DeFi) applications for yielding and Day Trading; Ether is gradually switching to Ethereum 2.0, which has skyrocketed its market value. Ether 2.0 is much faster, better, more scalable, and its transaction is cheaper and hosts better functions.
Ethereum’s Yearly Performance has increased to 1,272% in its 2020-2021 financial years. In the later parts of the year, the percentages keep rising daily. The global pandemic provided a platform for ethereum to perform. Around April and May, Ethereum outperformed traditional assets and mainstream companies with large investor clusters, including Tesla Inc and BNY Mellon.
The Ethereum platform has more quality and value than other coins in the market. According to Bitcoin Loophole experts, that uniqueness has put it on top of financial market charts. Special features about ethereum include:
- Ether is Ethereum blockchain’s native cryptocurrency and the economic fuel that runs the network. Ether is used to pay for the computing power and transaction fees for every transaction on the blockchain.
- Smart Contracts as a computer program facilitates trade and exchange of assets between two willing parties. The assets could be money, property, or digital assets. Its main feature is that once a transaction has been executed, traders cannot reverse it. The verification of each transaction has been outsourced to third parties keeping the platform legit.
- Ethereum Virtual Machine is designed to operate as an environment to compile and deploy ethereum based smart contracts. It is coded with a language to understand transaction orders and execute them; it runs the proof of work segment.
- Decentralized Applications (Dapps) is a system designed by developers to operate on Ethereum’s network without controlling a central unit. Its code runs on a peer-to-peer network and provides direct interaction between investors (Sellers and buyers).
- DAO (Decentralized Autonomous Organizations) is a digital organization that operates without hierarchical administration. It works democratically, governs all the protocols embedded in the ethereum blockchain, and relies on all the protocols to make decisions.
- Decentralized Finance (DeFi) consists of applications that run on the ethereum blockchain and has provided profit-making ways that have enabled the disruption of traditional finance. The thing is, every DeFi protocol built is built and hosted on Ethereum’s blockchain.
- NFTs (Non-Fungible Tokens) is the newest addition to the ethereum blockchain. NFTs are unique tokens that preserve the ownership of properties in the digital space. This is to include art, music, entertainment videos, properties, and tangible world assets. NFTs are typical title deeds, but buyers, sellers, and hackers cannot manipulate them in the online space.
The addition of NFTs has rallied investors to ethereum because of the solution offered to digital art and ownership. Youths, developing countries, artists, and digital artists have benefited most from this program. Now investors can trade NFTs for Ether, and you can purchase NFTs from anywhere in the world.
Why Ethereum is the Best Coin to Invest In
According to Forbes, Ethereum growth has been attributed to NFTs, and developers have built Procedures and DeFi protocols on its blockchain. The increasing activity surrounding DeFi and NFTs has surged Ethereum’s prices in the better part of 2021; the more the users interact with ethereum, the more and better chances Ethereum is changing the cryptocurrency market.
Doge supports top Shark business moguls such as Elon Musk; in recent times, Tesla’s CEO mentioned a possible merger between Ethereum and Doge. In this case, Ethereum will dominate the crypto market in less time than Bitcoin did.
ETH 2.0 has been marked by developers as a positive upgrade and a good trading platform for investors. However, Danial Daychopan, the CEO and founder of a London-based DeFi firm, states many FOMO (Fear of Missing out) concerning investing in Ethereum. It is a good and a bad strategy for investors and developers; investors could crash on their investments while Vitalik Buterin makes the best out of it. Investors incur the losses while developers use trading to pay the blockchains` fuel.
Ethereum is the most recent trend in the crypto industry; this is a good time to stockpile your investments and make as much profit as you can before there is a market surge. As an Altcoin, Ethereum could be the first coin to trade against bitcoin at an equal measure. Please do your research and decide the best way forward on your investments, be smart and follow where the money is; at this age, it’s Ethereum.