The second most valuable cryptocurrency in the world, Ethereum, has recorded significant gains than bitcoin during 2021. Specifically, the price of Ethereum is around $3.400, recording gains of over 350% this year, while the price of bitcoin strengthened by only 90%.
Last week the price of Ethereum rose by 30%, while that of bitcoin remained stable. This of course has raised concerns that the second most valuable cryptocurrency in the world has recorded a corresponding rise of bitcoin in 2017, a few months before its spectacular dive in 2018.
Ethereum is a very popular cryptocurrency for digital markets in areas such as art and sports. Experts agree that in many cases, many buyers are looking for alternatives to bitcoin, as Ethereum is strengthened based on its technical specifications.
The giant platform, Coinbase, which recently went public, now supports trading with Tether and USD Coin, the so-called fixed currencies that depend on the dollar. Both are compatible with Ethereum digital wallets.
Also, the company that manages Ethereum recently upgraded its network, which will help it increase the speed of transactions.
However, some experts point out that the rise of Ethereum’s price is not only due to its technical specifications, but also to the fact that “there is a real, fundamental and sharp shift in demand” of cryptocurrencies at the moment.
As they point out, until recently, new investors in cryptocurrencies showed interest only in bitcoin. But then they started to show interest in other cryptocurrencies, mainly Ethereum, in order to diversify their portfolio.
In addition to Ethereum, investors are likely to start investing in other cryptocurrencies in the near future as it will be a way to deal with the inflation that will come when global growth rates strengthen, finally coming out of the pandemic crisis.