The value of Ethereum’s currrency is increasing alongside its altcoins Bitcoin and Litecoin, and the price of one Ether is currently at a high of $625.25 USD, according to CoinMarketCap, despite the CryptoKitties drama. 2018 will welcome a range of regulatory requirements and financial institutions are launching new products on the blockchain in order to simplify compliance, and this is where the Ethereum blockchain is becoming increasingly popular.
A project named the Massive Autonomous Distributed Reconciliation program (Madrec) was announced this week and will be led by UBS with involvement from Barclays, Credit Suisse, KBC, SIX and Thomson Reuters. For a while now, financial news has been dispersed with updates of how banks are experimenting with cryptocurrencies and this announcement is one of the most recent, after Bitcoin futures began trading.
Unlike Bitcoin, however, Ethereum has always been spoken about in a more positive way and has become the second largest digital currency in two years. After being launched in 2015, the value of Ethereum’s currency, otherwise known as Ether, has increased by more than 6,800% since the start of the year, according to The Telegraph.
With Ether being the third most valuable digital currency and the virtual currency with the second highest market value, ether has grown in popularity, especially during this cryptocurrency boom that we seem to be experiencing.
Vitalik Buterin first explored the idea of the Ethereum blockchain in 2013 as a 19 year old with the aim of creating an improvement on bitcoin. ‘Like bitcoin, it is a decentralized payment network, with its own cryptographic currency, that allows anonymous payments to be sent across the internet without the need for a bank or other third party. Coded transactions are stored in a decentralized ledger, the blockchain, and are visible for everyone on the network to see,’ The Telegraph explained.
Like Litecoin, speed is the reason why Ethereum has excelled in this space and is thought of to be more effective than Bitcoin, as ‘blocks’ or the record of transaction can be created much quicker. Alongside this, the Ethereum blockchain network allows third party applications to run on the network, not just Ether and not just money either – other forms of data can also be stored.
When it rises, Ethereum always does in a steady fashion and this jump is something out of the ordinary, but the increase in Ether value could be because of the same happening to Bitcoin, and in turn, Litecoin. Due to more and fresh investments being undertaken into cryptocurrencies, Ether value was bound to increase, but when interest wanes, will the bubble burst? I think so.