How has Etherum fared?
The volatility of the cryptocurrency market is not new to the people in the crypto sphere. And if you eventually still find it hard to believe in the crypto winter, 2018 is a perfect start for historical upkeep. The year 2018 will forever be significant in the history of cryptocurrency; especially for the crypto coins on the top ten market capitalisation chart. It is not news that the year was laced with a lot of bearish run, compared with the bullish equivalent. However, while Bitcoin remained unrivalled on the top of the chain, altcoins were battling themselves in the market share capitalisation. The last quarter of the year saw Etherum (ETH) lose its second position on the crypto coins market capitalisation to Ripple (XRP). But 2019, which by the way had a lot of prophesies to go by has already started its own historical trend, even in less than a month into the year. This is evident as Etherum recently took back its number two position, with over 11% bullish run, reaching a total market capitalisation of $15.6 billion. With this improvement, it is proficient to say that we have seen the comeback of Etherum.
Etherum was created in 2015 by Vitalik Buterin, a Russian-Canadian developer. It is not just a currency, rather it is a blockchain protocol which allows users around the globe to transfer and receive coins without the need of a third party. Unlike the alleged king of cryptocurrency, Etherum is beyond just financial transactions. When it was created, it became the first blockchain project capable of hosting and performing smart contract technology. The smart contract technology is somewhat a line of code which avails people the platform to reach an agreement without the need or the involvement of a third party. Another distinguishing factor that have made Etherum survive the test of time is that it is able to confirm the movement of funds in time as little as 16seconds. Which is fifteen seconds less than the normal blockchain smart contract protocol.
When Etherum was launched in 2015, Butterin’s team raised over $18 Million in asset. That same year, It was enlisted on major cryptocurrency exchanges, with the cryptocoin trading between $2 and $3 in its early stages. The following year saw Etherum rise to $20.5, but in that same year, it took a major hacking blow, with the perpetrators carting away with over $50 Million worth of the crypto coin. This made it end the year at a coin placed at $8. However, Butterin’s team had gone back to the drawing board that same year, and so it forked into Etherum (ETH) and Etherum Classic (ETC). ETC didn’t gain much popularity but the fork kind of made Etherum popular in the cryptocurrency world. This was evident in 2017, as Etherum rose from $8 to $840, reaching an all-time high in early 2018 at $1,360. Unfortunately, 2018 was not a good year in general for the crypto coin – and it was not a good year for other cryptocurrencies either.
Word for Investors
However, as established earlier, 2019 has greeted Etherum with a boost. As a blockchain technological platform, it boasts of over 2,000 dapps. And with its developers working to find solution to the scalability issues that it encountered last year, an upgrade is due this January. This upgrade which is named Constantinpole will improve the blockhain’s efficiency, making it more ASIC-resistant. Most experts believe that this upgrade will be like the Etherum fork of 2016, and so it will increase the popularity once again, making what I have termed the second coming of Etherum. Also, the team at Etherum are looking forward for a much later upgrade in 2019, enabling the use of Casper protocol and sharding. This as I perceive will move Etherum from PoW (Proof of Work) to PoS (Proof of Stake), thereby eliminating the problem of the regulation of mining operations. Also, sharding will afford the blockchain of Etherum more speed in transactions. All these things might sound too technical but in actual fact, these are what has made Etherum stand out over the years, and with an upgrade that will increase the efficiency of the cryptocurrency and the blockchain technology it uses, Etherum is set for a bullish run. Especially as it is still the favourite for cryptocurrency dapps projects.