23 November 2020
The second largest cryptocurrency in the market after Bitcoin, Ethereum’s native digital currency Ether (ETH) started trading at $586 just today, gaining over 17% this week alone.
This coincides with a broad market uptrend as Bitcoin happens to also be trading at a 35-month high of $18,900. Ether’s record high was $1,433 which it hit back in 2018. As Ether breaks its previous upper resistance, we can expect a continuation of an upwards trend in pricing.
At the time of publishing, Ether was trading at $585.77.
Other altcoins that seem to be gaining traction include Litecoin (LTC) which experienced 12% gains as of recent.
Though the primary reason for this jump in pricing appears to be general bullishness around cryptocurrencies, this also comes at a time when the much anticipated release of Ethereum 2.0 is right around the corner. Ethereum 2.0 is set to provide a significant upgrade to the network in an attempt to remedy the scalability issues it currently suffers from. Compared to the Ethereum 1.0 network that currently supports 30 transactions per second, Ethereum 2.0 promises an impressive 100,000 transactions per second. It was also devised to be more secure, with an even more decentralized network. Rollout is anticipated to begin during the first quarter of 2021, and it is set to attract more businesses and larger institutions, leading them to adopt Ether.
Additionally, experts have been wondering how the recent election of Joe Biden would impact the cryptocurrency market, with many having a positive outlook on the matter. With Biden set to recruit a team of crypto-savvy individuals like Lael Brainard and Gary Gensler, there is a projected crypto-friendly sentiment expected to arise within the Biden/Harris administration. You can read more on how a Biden presidency is expected to affect cryptocurrency.
Additionally, the ongoing global struggle with the COVID-19 pandemic has also created ideal scenarios for the growth of cryptocurrency as many investors have begun seeking out alternative investments in commodities as traditional assets become more and more risky. Cryptocurrencies are increasingly being viewed as protected assets.
All these factors, along with the fact that global adoption of cryptocurrencies appears to be underway make for an ideal environment in price increases. A noteworthy incident that helped push along the global adoption of cryptocurrencies was PayPal recently adding both Ether and Bitcoin access capabilities to their platform, thus introducing crypto to their staggering user base of 340 million people around the globe.
This type of institutional acceptance of Ether has undoubtably boosted confidence in the currency, and will continue to do so for the foreseeable future.