Just a week after the impressive Dogecoin rally, during which the cryptocurrency broke the 70-cent barrier for the first time and until the appearance of Elon Musk on “Saturday Night Live”, Ethereum comes forward again.
The currency has risen sharply in recent days, while in the last month its value has almost doubled. The second largest cryptocurrency in the world in terms of capitalisation is now worth more than $4.000 and is far from $176 per currency during the same period last year.
Unlike dogecoin, whose rise was fuelled by tweets and Reddit, Ethereum has the “vote of confidence” of institutional investors and has been the preferred cryptocurrency in multimillion-euro NFT transactions.
It is based on blockchain technology like Bitcoin, but instead of being seen by its supporters as an asset similar to gold, it is considered by investors like Mark Cuban to have more potential. This is because one of its uses is as an infrastructure for a decentralised internet and people can create applications on the Ethereum network.
An investment in Ethereum earlier this year would yield strong returns in the coming months. A $1.000 Ethereum market on January 1 – priced at $730 per cryptocurrency – was worth $5.710.85 on Monday. This is a 471% profit, according to CNBC estimates.
It is important, however, to keep in mind that past performance is not a guarantee of future performance. Experts have warned investors not to bet more on cryptocurrencies than they intend to lose.