The Ethereum cryptocurrency was created in 2015 by programmer Vitalik Buterin.
After discovering the digital currency sector with Bitcoin (as many did), he decided to design an entirely new protocol using a Turing-complete language, with the ambition of creating a totally decentralized and secure blockchain, which would also have the advantage of being faster and cheaper to maintain.
The Ethereum platform enables the creation of smart contracts by its users, whose use is proving increasingly interesting for individuals and businesses alike, and uses the “Ether” unit of account as a means of payment for these contracts, whose acronym used on exchange services is “ETH”.
This cryptocurrency has rapidly become the second-largest decentralized cryptocurrency on the planet, with a capitalization that has fluctuated between €200 and €500 billion since the beginning of 2021.
Although this valuation is lower than that of Bitcoin, it is by far the second highest of the entire cryptocurrency market.
Ether alone accounts for around 20% of the global crypto market!
What’s more, while Ethereum is “only” the second-largest blockchain, it is the leading one in terms of usage.
The benefits of the Ethereum blockchain
Indeed, the key difference with Bitcoin is the ability on Ethereum to create applications, stored on the blockchain itself, paving the way for decentralized finance services(DeFi) and non-fungible tokens(NFT), which are developing rapidly.
Thanks to the applications available on the Ethereum platform, for example, it is possible to take out a loan, lend money, carry out trading operations, or even authenticate property titles, all without going through a centralized intermediary!
It’s also possible to create new cryptocurrencies, thanks to tokenization.
This makes Ethereum the most diverse and active project in the crypto ecosystem.
This flexibility and speed of processing, combined with the fundamental development of decentralized finance and title registration.
But above all thanks to smart contracts and non-fungible tokens, largely explains Ethereum’s growing popularity; with crypto investors, as well as with large corporations who are multiplying projects linked to this platform.
Ethereum price soars
It’s not without reason that they’re rushing to buy Ethereum, contributing to its soaring price.
The value of Ether has risen from just over €100 at the start of 2020, to €1,000 at the start of 2021, then to €2,000 at the start of 2022.
And while the price may fluctuate widely upwards or downwards, it continues to climb from year to year.
Some experts anticipate that it will pass the €10,000 mark by the middle of the decade, then the €30,000 mark around 2030… On November 6, 2024, the Ethereum price is €2618.27.
Trading in previously authorized Spot ETFs began on this day.
The price rose on this news, foreshadowing a massive influx of capital into these financial tools.