January has not been the great month for the cryptocurrency market, and the majority of digital currencies slumped in the middle of the month. However, the latest developments show that Ethereum Price rises 30% over a week. What has caused Ethereum price to surge to $1,200?
29 January, AtoZForex – We are just some days away from the last month of winter and so far, 2018 has not been quite generous in terms of cryptocurrency market gains. In fact, during January, the majority of cryptocurrencies have dropped, while only a few managed to recover back. The biggest selloff has taken place in Bitcoin markets; yet, Ethereum has remained somewhat resilient to downward pressures.
Ethereum Price Rises 30%
In the latest development, the value of Ethereum has risen 30% over last week. We discuss the key drivers of Ethereum price. The second biggest cryptocurrency in the world, Ethereum, has advanced 30% over last week. Thanks to its leap, the digital currency has gained a lot of exposure on the media, which has further intensified its rally.
Aside from the overall market correction trend that was relevant all throughout January, Ethereum has managed to bounce back to $1,200.05.
In fact, the native token of Ethereum has risen in value over $1,200 from a low of $930 of last Monday. The 24-hour trade volume of Ethereum has totaled around $4.5 billion. South Korean Bithumb has been the top exchange, while over 10% of the trade volume in Korean Won.
ICOs and decentralized apps grow
The next big reason behind Ethereum rally is a growing interest in ICOs and decentralized applications. As the number of those grows so does the demand for Ethereum. This is due to the fact that Ethereum platform is the best choice for these projects thanks to the level of support and advanced scalability features.
The roadmap of Ethereum has taken into consideration the scalability challenges via the implementation of its Casper update. The update is already in the testing phase. According to the Ethereum co-founder, Vitalik Buterin:
“The Casper aspect of Casper, where two conflicting blocks should not be able to be finalized, seems to actually happen running and the network agrees all along what the final chain is. So that part has been totally successful. On the Sharding side, quite a lot of work has started.”
Sharding includes putting a considerable amount of work off the chain to advance transaction speeds. This would also ease the lead on the distributed ledger.
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