As of late, Ethereum has been on an absolute tear.
The price of ETH has surged from around $100 at the start of 2017 to nearly $1,400 at the time of writing. That represents a gain of over 1,200% in less than a year!
What’s more, Ethereum’s market capitalization has now eclipsed that of Bitcoin Cash, making it the third largest cryptocurrency by market cap behind only Bitcoin and Ripple.
So, what’s driving this incredible Ethereum bull run?
There are a few factors. First, there’s the general increase in interest in cryptocurrency that has been occurring over the past year.
As more people become aware of and interested in digital currencies, demand for all cryptocurrencies is rising.
Second, there’s been an influx of new money entering the Ethereum market. A large portion of this new money is coming from institutional investors who are buying ETH to participate in initial coin offerings (ICOs).
ICOs have become a hugely popular way to raise funds for blockchain-based projects and many of them are conducted on the Ethereum network. As a result, demand for ETH is rising as more investors want to get their hands on some so they can participate in ICOs.
Finally, there’s increasing optimism about the future of Ethereum as a platform for decentralized applications (dapps). The launch of the long-awaited Ethereum Metropolis upgrade is just around the corner and it’s expected to bring significant improvements to dapp development and usability.
This is helping to drive up ETH prices as investors anticipate increased use of the Ethereum network in the future.
All signs point to Ethereum being in the midst of a powerful bull run. If interest in cryptocurrency continues to grow and more money flows into ETH, there’s no telling how high prices could go. So if you’re thinking about buying some Ethereum, now might be the time to do it!.