Live Ethereum Price Today + Historical ETH Price Data

This is possible thanks to the Beacon Chain going live in December 2020, which allowed staking. Unlike Bitcoin, however, ETH adds smart contract functionality to the blockchain. In a study, analyst Ryan Watkins published a report by Messari stating that Ethereum 2.0 could make the altcoin more valuable than Bitcoin.

By January 2018, ether’s price shot to $1,418 before experiencing a huge fall. It would take another three years for its price to rise again to a new all-time high (ATH) of $4,379 between February and May 2021. The live Ethereum price today is $3,565.92 USD with a 24-hour trading volume of $139.88M USD. The price of ETH is down -0.31% since last hour, up 1.5% since yesterday.

  1. For Ethereum to reach $10,000 per coin, the network would need to hit an overall market capitalization of close to $1.2 trillion (USD).
  2. However, not only retail investors are paying attention to the largest altcoin in market cap, but institutions as well.
  3. Many experts predict that Ethereum will not only reach $10,000 but will surpass it in the future as demand will continuously pick up.
  4. Keep reading to see a timeline of Ethereum’s price history since its launch and ICO in 2014 — we pair significant events and corresponding news to major price moves.

Given Ethereum’s current consensus mechanism and distribution model, for one ETH to be worth $50,000, it would need to hit a market cap of $6 trillion (USD). Ethereum uses the proof-of-stake (PoS) consensus mechanism, where validators secure the network and verify transactions. Validators must stake 32 ETH — or less when staking through pools such as Lido and Rocket Pool — to ensure they act in the network’s best interest. Dishonest behavior is penalized through something called slashing, meaning that the culprit loses a portion of their staked ETH. In exchange for their contribution to the network, validators earn rewards in ETH. While the Bitcoin blockchain can be compared to a bank’s ledger, the Ethereum blockchain is similar to a (world) computer.

Ethereum is a network of computers called nodes that build and find consensus on a growing series of batches of transactions, or a blockchain. Bitcoin revolutionized the world of financial settlement following its launch in January 2009, and Ethereum builds on Bitcoin’s innovation of peer-to-peer electronic cash to add programmability. This means that it serves as the backbone of an immense and yet fast-growing world of financial services, games, and other applications, all decentralized. Ethereum emerged as a cryptocurrency focused on proof of work, or PoW.

ETH is the largest altcoin in market cap, being fundamental to the cryptocurrency market. Through the Ethereum network, important concepts such as smart contracts, decentralized finance (DeFi) and non-fungible tokens (NFTs) were introduced in practice. Thanks to these smart contracts, Ethereum allows the deployment of permanent, immutable decentralized applications onto it, that users can interact with. This spurred the growth of Decentralized Finance (DeFi), where applications provide the services normally offered by financial institutions like banks, exchanges and brokerages. For one ETH to surpass Bitcoin’s price, ETH needs to first become a five-figure fiat value cryptocurrency. Hypothetically, if BTC is at $50,000, it has a market cap of around $960 billion.

What Drives the Price of Ethereum?

This upgrade will expand the network’s capacity to store data while working cohesively with layer 2 chains to reduce network fees and scale transaction throughputs. Just like any other technology, Ethereum isn’t immune to criticism. This is the inability of the blockchain to process as many transactions per second buy ethereum with credit card fee buy ethereum wallet uk (TPS) as Visa or Mastercard. Ethereum’s all-time TPS lies between 1 and 16 compared to Visa’s 24,000 TPS and Mastercard’s 5,000 TPS. While Ethereum’s base layer blockchain is still limited in terms of scalability, second-layer solutions on top of Ethereum are already being developed to alleviate the issue.

There is no accurate prediction as to how a successful Ethereum 2.0 upgrade would impact ETH prices. At the moment, the Ethereum community is still waiting for an upgrade that troubled founder, Vitalik Buterin, since 2017. A transition from proof-of-work to proof-of-stake would change the network’s consensus mechanism, the actively circulating supply, and in turn, ETH’s value dynamics.

ETH to USD converter

In 2017, the crypto bull market saw ether’s price rise beyond $100 for the first time. Five months later, the crypto market’s bullish streak strengthened due to increased buying pressure, pushing the price of every digital currency to new highs. Because almost every new project launched on Ethereum by doing an ICO, ether was in high demand.

EIP-1559 dictated that fees used in transactions are burned and thus take ETH out of circulation. Since then, Ethereum’s supply has increased via block rewards to miners on the network, starting at 5 ETH per block in 2015 and diminishing to 2 ETH since. 5  the ioc container Ethereum validators currently earn a return of approximately 6% APR, but this could change as the staking rewards are determined by the number of stakers. Having begun at 20% for early stakers, the reward will be lowered to between 4.5% and 7%.

BTC’s Impact On ETH Price

That is, through its smart contracts, different applications can be developed with specific commands. As the name implies, these applications are not under the eyes of a single figure or entity. Ethereum’s usage in blockchain applications could grow conservatively over the next five to seven years. The increasing value of the platform to corporations in need of the technology could spur further investment demand. A group called the Enterprise Ethereum Alliance (“EEA”) facilitates the development of applications on the Ethereum platform by large corporations in finance and other industries.

As such, the same criticisms that Bitcoin has suffered tend to be leveled at ETH in terms of energy consumption. Smart contracts were added to Ethereum in order to convert it into programmable money. They allow for the automatic execution of a predefined action when conditions are met. CoinShares data revealed that, as of May 2024, institutions had invested more than BRL 50 billion in Ethereum this year. It is important to point out that a quarter has passed since these data were sampled, and the total invested may have increased considerably.

Ethereum is currently transitioning from Proof-of-Work (PoW) to Proof-of-Stake (PoS), which may also result in unexpected price movements. However, as the Ethereum network builds a reputation of its own, the ETH price also moves at its own pace. See more on price analysis, comparisons, and historical price data below. Although best vpn protocols Buterin is the face of the project, Ethereum has seven other co-founders. However, Ethereum’s shift to proof-of-stake will end GPU mining and instead mean that only validating nodes need to stay connected to the internet 24/7. As Ethereum remains proof-of-work for now, mining still relies on computational power.

However, the circulating supply is expected to drop significantly after the PoS transition. This will cause a change in the coin’s price, and given that the transition goes to plan, increased demand from commercial cash holders. Between 2023 and 2024, the Ethereum network will undergo Sharding with a focus on something called danksharding.

ConsenSys is a company known for developing software and infrastructure for the Ethereum blockchain. This means that not only through investments in funds and direct purchase of ETH there has been exposure, but also through investment in companies in the sector. Such a chart doesn’t lend itself to traditional technical analysis where high and low trading levels provide clues with relative accuracy about future movements.

That is, the network upgrade can make ETH have a higher market value than BTC. For Watkins, the anticipated changes to the Ethereum network could make it even more secure than Bitcoin. Furthermore, the token burn brought on by the network’s recent hard fork could make ETH even more valuable. In this scenario, the report believes that Ethereum steals the spotlight from Bitcoin.

Based on the fact that ether is the second-largest cryptocurrency by market cap and it powers the Ethereum blockchain, one is tempted to assume that ether appears to have a future. For instance, Ethereum has the highest number of DeFi protocols, according to data from DeFi Llama. So will Ethereum be a great contender for smart contract applications going forward?

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