In the crypto industry, Ethereum (ETH), the decentralized open-source blockchain, is quite a popular name. Just because Ethereum has shown its potential and also continues its development in the industry. As a part of its development, the blockchain is trying to set new benchmarks.
If you are a crypto enthusiast or you keep yourself updated from the recent happenings in the crypto industry, then you must have heard about the Ethereum merger. Last year, Ethereum planned its shift from proof-of-work (PoW) to proof-of-stake (PoS). This crucial upgrade allowed the blockchain to reduce its annual energy consumption at an extremely low level.
Furthermore, the roadmap of Ethereum outlines the specific improvements that will be made to protocol in the future. While the overall roadmap will bring some key benefits such as cheaper transactions, extra security, better experience, and future proofing.
ETH Price Analysis
The ETH price is at press time showing little drop in the last 24-hours, with a 24-hour trading volume of $10.46 Billion. ETH trade against the usd price. ETH price declined more than 4% in the last 7-days while almost similar drop is noted in the last month. However, Ethereum price marked nearly 41% of upsurge in the last 6-months while year-to-date (YTD) growth is more than 50%.
It can be said that high market capitalization of any asset shows the high value of cryptocurrency or asset in the market. Meanwhile, Bitcoin (BTC) has the highest market cap that is currently at $535.01 Billion. Ethereum is following BTC.
Ethereum price today is trading at $1822.4 and showing a bearish trend. Its price dropped from its 50-day EMA while above from its 100-days EMA. It can be seen that active bears in the market dropped down the Ethereum price. The current market cap of ETH is at $218.85 Billion, which dropped from $230.86 Billion in the last month.
Late 2021, Ethereum market cap surged nearly at $548.00 Billion that was its highest mark till date. The price of Ethereum reached its highest level in November 2021, when ETH traded at $4,644. Compared to that, the price of Ethereum dropped almost 60%. As it is the second most-traded cryptocurrency by market cap, Ethereum’s price also witnessed high volatility.
Ethereum Blockchain: The Next-Gen Smart Contract and dApp Platform
Ethereum launched back in 2015, when the platform created its “genesis block.” Ethereum is a decentralized global software platform which is powered by blockchain technology. Ethereum blockchain has its cryptocurrency, ether or ETH. This blockchain platform shares many similarities with Bitcoin and still has long-term visions and limitations. Ethereum transaction fees is nearly at 2.589, while at present, Ethereum gas fees is at a level of 108.13, quite up from yesterday. The Ethereum block generally stores the data of every transaction.
The computer that is used to run the software connected Ethereum blockchain known as Ethereum node. While the blockchain platform supports smart contracts that is a crucial tool behind its decentralized applications (dApps). Ethereum protocol has more than two thousand dApps that are already built in its network. Ethereum has a number of decentralized apps such as Uniswap, Dark Forest, Foundation, and PoolTogether.
Meanwhile, the decentralized autonomous organizations (DAOs) can use smart contracts and applications to collect the votes from the fund members. It must be noted that the smart contracts programs only run when the predetermined criteria is fulfilled.
One can buy Ethereum (ETH) from many crypto exchange platforms or directly through crypto wallets. The cryptocurrency exchanges and wallets offer multiple benefits to its users when they buy Ethereum. As Ethereum works on blockchain technology, it does keep the records of every transaction. While Ethereum smart contracts run on its blockchain.
The Ethereum Merge
Last year in September, the Ethereum blockchain made the transition from proof-of-work (Pow) to Proof-of-Stake (PoS). This was basically an upgrade of Ethereum mainnet. The transition from proof-of-stake to proof-of-work is called Ethereum merge. Due to which, the energy costs of processing Ethereum transactions reduced to almost 99%. When the process of this transition happened, Ethereum price reached at almost $1200.00.
Basically, the Beacon chain brought PoS to the Ethereum network. The Ethereum network has quite high gas fees despite its transition to PoS.
Ethereum 2.0
Ethereum 2.0 is generally an upgradation series of the decentralized platform, Ethereum. This upgrade will enhance the speed, efficiency, and scalability of Ethereum. In its final phase of upgrade, the blockchain will finally reach its goal and become a transparent and open network for decentralized finance (DeFi).
Ethereum 2.0 has different phases, the Phase 0 – Beacon Chain, was completed in 2020. Then, in September 2022, Phase 1 – The Merge, took place. Now, the blockchain smart contract platform is in its Phase 2 – Sharding. This upgrade is expected to be released in 2024.
Ethereum Name Service
Ethereum Name Service or ENS provides a solution in the form of a distributed and extensible naming system based on the Ethereum network. The cryptocurrency address usually has a long string of numbers and letters that is read by computers. ENS assign human-readable names to machine-readable identifiers, such as Ethereum addresses, metadata.
Ethereum is no doubt doing quite well in the crypto space. The blockchain is giving quite tough competition to Bitcoin. Meanwhile, in the last crypto winter along with most of the cryptocurrencies, BTC and ETH also dipped down. But, since the beginning of this year most of the cryptocurrencies are doing quite well. In recent times, much of crypto also marked its 90-day high along ETH.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/11/eth-price-analysis-along-its-crucial-development-progress/