Ethereum turned 5 years old: the factors of its growth

Ethereum turned 5 years old the factors of its growth

The second most important cryptocurrency on the market yesterday turned five years since its launch

Ethereum (ETH) yesterday turned five years since its launch in the crypto ecosystem. The world’s second largest crypto network has grown dramatically from July 2015 to today. Both the token and the network itself-which hosts another series of projects – presented a fair amount of growth statistics in its short life.

Throughout its journey, Ethereum has submitted several updates and expects the latest by the end of this year or early 2021. This is Ethereum 2.0 (or Serenity). Among the innovations that will be presented, we highlight the change from the labor test consensus algorithm (POW) to stake Test (PoS), which will replace the miners with validators that block ETH deposits to validate blocks and earn rewards.

Based on its annual statistics, ETH’s price has grown by more than 19,000% since its inception, from USD 1.23 to over USD 300. Its market capitalization was also increased by more than 31,000%.

On the other hand, the number of transactions in the network grew by almost 59,000%, while their average value did so by more than 65%. However, these data are merely approximations as daily statistics continue to grow.

In addition, many crypto ecosystem referents and analysts analyze the interest of certain tokens or topics on the crypto agenda based on the increase or decrease in the use of hashtags in social networks. From that metric, mainly on Twitter, interest in ETH has grown by more than 300% since its launch.

Ethereum co-founder Vitalik Buterin assured in dialogue with an American podcast that the absolute priority is the completion of Ethereum 2.0. Regarding the future of the token, and more precisely its forecast regarding its quotation, he said that he only hopes that “it will become a regular thing for people”.

“If you have ETH and are interested in ETH as an asset to get rich quickly, then you care about the possibility and the probability that it will reach ten thousand. But if you care about the value of ETH for network security purposes or even to make sure that the ecosystem continues to have funds or simply an old-fashioned stability to ensure the usefulness of ETH, then what matters most is that the price of ETH does not fall to zero.”

The rally that led ETH in 2017-which ended in early 2018 with a quote above $ 1,400-was so far the biggest milestone in its short history. The sharp decline in the coming months brought the asset back to relatively low levels, although it has shown sustained growth in recent months.

In that boom in late 2017, ICOs were the main protagonists of the Ethereum scenario. Since then, however, many decentralized finance projects have begun to take root in the network. In recent days, in fact, these types of projects –of which nine of the top ten operate on the net – have driven growth in ETH’s listing.

On the other hand, experts suggest that ETH’s recent growth has to do with an increase in its positive image as a technology. Visa’s announcement of creating applications on the network and the recent failure of the United States to declare Bitcoin as “money,” was also important news that brings cryptocurrencies closer to traditional investors.

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Written by S. Parmar

S. Parmar is a digital marketing and cryptocurrency enthusiast, who always learns and predicts new things. He has 4 years of experience in cryptocurrency.


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