Ether has seen a meteoric rise in its value this year. The digital asset has experienced a 37.5% surge in the past seven days, reaching a record high of $3,981 today and taking its market capitalization to $446 billion.
Its price spike this year tops that of Bitcoin with a 325% rise as compared to Bitcoin’s 95%. The digital coin is second to Bitcoin on the cryptocurrency ladder and is also the largest and most well-established open-ended decentralized software platform.
Much of Ethereum’s success this year is attributed to the European Investment Bank’s decision to use the Ethereum Blockchain to issue 100 million euros in two-year notes as the digital asset began its boom after the announcement.
It should however be noted that the uniqueness of ETH has also played a major part in its recent price spike. Ethereum’s Blockchain and its native token being the crypto of choice for the purchases of many non-fungible tokens have helped with its price action. The option of building decentralized financial contracts on the Ethereum system has also drawn investors.
Many experts concluded Ether was about to cool down on its hot surge, consolidate for some days before making any further run after hitting a new high, based on historical patterns. Ethereum has however crossed that hurdle and is on course to reach even higher heights and now many investors are wondering where it’s headed now.
One of Ethereum’s red flags this year has been its miners or gas fees but that is on course to change as a major overhauling from the camp of the digital asset is set to happen. Ethereum developers are planning a new transaction and payment system dubbed the “EIP-1559” which will take place during the “London hard fork”, scheduled for mid-July.
The new system will see gas fees replaced by an automatic and mandatory determined base fee which will rise and fall based on network congestion. Users on the Ethereum network will also have the option of tipping miners if they need transactions completed quickly. The new changes to the Ethereum system aim at making its network bigger, sustainable, and attractive as volatility and sharp price rise which has been a problem for Ethereum’s network will be eliminated.
The major haul on Ethereum’s system will also seek to ‘burn’ some of the gas fees which will eventually see the supply of Ether decline over time, unlike Bitcoin’s which is fixed. Ethereum 2.0 is also underway with the first step dubbed The Merge set to be completed by the end of the year. Experts maintain there are more exciting developments to look forward from Ethereum which will attract new users and further boost the price of ETH.