Ethereum fans have had reason to celebrate over the last week as the popular altcoin has soared to a new all-time price high. As of May 6, 2021, the all-time price of Ethereum is almost $3,500 which represents an increase of around 300% since the beginning of 2021, which is no small feat.
While Ethereum is probably the most popular altcoin, it had always taken a backseat to bitcoin within the crypto industry. Now, it seems that the token is starting to take center stage itself and could find itself a formidable contender to bitcoin in the future.
Why Ethereum Has Gotten Bigger
There are a number of reasons for Ethereum reaching this new all-time price high. One of these is the general bull run that is taking place within the crypto industry. As many of us know, bitcoin has been seen a steady price increase since late 2020 and when bitcoin increases in price, it is not unusual for altcoins to increase as well.
The general crypto industry has seen a surge in interest from both retail investors and institutional ones. This means that there is more demand for cryptocurrencies in general and this demand is a big factor for Ethereum.
Then there is the fact that the Ethereum blockchain itself is on its way to seeing wider use by the general public. In fact, this might even be the edge that Ethereum has over bitcoin in that its blockchain is generally considered better in terms of application. Several platforms and applications are built on top of the Ethereum blockchain in a way that we do not see for the Bitcoin blockchain and this is only going to increase with the boom of DeFi.
Finally, Ethereum is preparing for its next upgrade, the Ethereum 2.0 upgrade, and with this, scalability and security issues will be addressed and this means that Ethereum will be used even more. Moving forward, we can expect to see see the price of Ethereum steadily rise and maybe even hit the $5,000 mark at some point.
Bitcoin has served as an introduction for mainstream investors and the general public into cryptocurrency but now it seems that other cryptos will be making an impact as well. This benefits the larger community as it means more chances for investment and a more robust ecosystem.
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