The cryptocurrency market has been on a roller coaster ride in 2021, with Bitcoin and other major altcoins experiencing significant volatility. However, one altcoin has been on an absolute tear: Ethereum. In 2021 alone, Ethereum has surged over 1,100%, making it one of the best performing cryptocurrencies of the year. Despite the recent pullback in the crypto market, Ethereum has continued to climb higher and higher.
Ethereum is the second-largest cryptocurrency by market capitalization and is widely considered to be the most popular altcoin. It is a decentralized platform that enables developers to create and deploy smart contracts and decentralized applications (dApps). Ethereum has been around since 2015 and has seen tremendous growth over the years, especially in 2021.
The surge in Ethereum’s price can be attributed to several factors. Firstly, Ethereum’s blockchain technology is being used by many companies to build decentralized applications and services. This has increased demand for the cryptocurrency, leading to its price appreciation. Secondly, Ethereum is also being used as a platform for Initial Coin Offerings (ICOs), which have become increasingly popular in 2021.
Furthermore, the hype surrounding artificial intelligence (AI) has also been a major factor driving Ethereum’s price higher. AI technology is being used to develop new applications and services on the Ethereum blockchain, which is further increasing demand for the cryptocurrency. Additionally, Ethereum’s DeFi (decentralized finance) sector has also been growing rapidly, with more and more investors getting involved in the space.
In conclusion, Ethereum has been one of the best performing cryptocurrencies of 2021, with its price surging over 1,100%. The surge can be attributed to increased demand for the cryptocurrency due to its use in developing decentralized applications and services, as well as the hype surrounding AI and DeFi. Despite the recent pullback in the crypto market, Ethereum has continued to climb higher and higher.
Source: Plato Data Intelligence: PlatoAiStream