For the first time the price of Ethereum has overcome a mark in 850 dollars and has set a new record on the background of high rates of decentralized applications like CryptoKitties and EtherDelta.
The Rise Of The Ether
Ether – native cryptocurrency blockchain Ethereum – reached a record of 3.8 billion dollars a day turnover during the last three days. For the last days as at 19 December the price of Ether has grown at approximately 20 percent, from 716 to 840 dollars.
In a short time the Ether has surpassed almost all cryptocurrencies on the market, with a few exceptions, as Bitcoin Cash, NEM, and Qtum.
Previously, world trade Ether was mainly focused on the market of cryptocurrency exchanges in South Korea. On three of the major cryptocurrency exchanges in South Korea – Bithumb, Coinone and Korbit was centered about 35 percent of the world’s trading Ether.
Recently the market of the cryptocurrency exchanges of the USA were handled most trades Ether, and the flagship Bitfinex and Coinbase cryptocurrency trading platform GDAX posted about $ 800 million in day trading Ether.
Earlier that month, the billionaire Manager of hedge Fund and investor Michael Novogratz expressed their optimism for medium-and long-term growth prospects Ether. According to the forecasts of Novogratz the price of Ether will triple by the end of 2018 from 500 to 1500 dollars.
The price of Ether has overcome a mark in 850 dollars and was nearing 900. Several analysts cryptocurrency sector also noted that Ether is undervalued, given the fact that the activity of developers and users is much higher than other cryptocurrency on the market.
Factors of the recent growth Ether
Investors traditional financial sector began to emerge in the cryptocurrency market in bitcoin futures. Ethereum has attracted the attention of investors in the cryptocurrency sector and in the traditional Finance sector. This is mainly due to the success of some decentralized applications, as CryptoKitties and EtherDelta, and the fact that Ethereum is the only crypto currency that can compete with bitcoin in the activity of developers, ease of use, substitutability, liquidity and scalability.
CryptoKitties is an important factor in the recent increase in the price of Ether. Some investors and analysts still tend to recognize CryptoKitties as a successful and legitimate decentralized application. But it demonstrated the potential of blockchain Ethereum to handle the auction of the digital assets in a decentralized way.
If you include the digital cartoon CryptoKitties along with any other digital asset, like a currency, an asset or a security model CryptoKitties can be used in the financial industry as a distributed exchange Protocol.
In connection with the problems of scalability of blockchain Ethereum Ethereum core developers currently working on unique solutions such as Plasma, Casper, and Raiden, to eliminate the cost of gas and excessive commissions for users and developers of decentralized applications.
But, according to co-founder of Ethereum Vitalik Buterin, scalability of Ethereum blockchain can take from three to five years, depending on the activity of developers. The value of Ether as a means of financing decentralized applications will continue to grow as you zoom in Ethereum and improve its technology.