It has not only been a good year for Bitcoin but been a fantastic year for Ethereum as well. Seeing some impressive gains this year Ethereum started at $8 per coin and has shot to a new high of over $400 at press release time. This gain of over 50 times or nearly approximately %5000 has seen the cryptocurrency establish itself as one of the most profitable for the year and this might only be the beginning.
The reason for why Ethereum has made such substantial gains may not always be clear but the demand by investors looking to cash in may be a good indicator. Ethereum has traded nearly 50% of all volume of cryptocurrencies over the past 24 hours with over 534,000 transactions. In comparison Bitcoin has only traded 30% of the total volume, leaving the remaining cryptocurrencies with the balance. This high demand for Ethereum is most likely driving up the price. A simple supply and demand matrix could explain the new nigh.
A second good reason why Ethereum may be gaining on the kingpin of cryptocurrencies is its command of the blockchain. Ethereum is currently processing nearly twice as many transactions per day as Bitcoin and are doing it quicker and cheaper than Bitcoin. To be precise Ethereum is around 4-5 times cheaper to use than Bitcoin and is processing more than all remaining cryptocurrencies combined.
Despite the recent setback for Ethereum two weeks ago that saw a critical vulnerability prevent many users from accessing nearly 300 million dollars worth of Ethereum, the cryptocurrency has rallied with the support of the community and broken a new all time high. This show of support for the altcoin solidifies it as a frontrunner and worthy competitor of Bitcoin.
There is no telling what the future holds for Ethereum but some analysts predict there is lots of room for huge gains. The cryptocurrency like most others this year has done very well and is expected to do even better in 2018. The resilience of Ethereum despite its many setbacks has proven that despite obstacles the currency is well on its way to becoming Bitcoins biggest competition.