An overview of Ethereum price, development, features, and its growth in 2021.
Ethereum is the second leading digital currency in the cryptocurrency market. As of February 2021, Ethereum’s price is at $1900, and it has a market cap of nearly $200 billion. Ethereum has been drawing attention from investors and developers for several reasons. Some of the reasons include its price reaching an all-time high (ATH), its growth in 2020, the rise of decentralized finance (DeFi) protocols on its blockchain, and its infrastructure that facilitates the development of decentralized applications (dApps).
Furthermore, there are various exciting developments that we will see in the Ethereum network in 2021. In this article, we look at the milestones, upcoming developments, why the price for ETH is surging, and how you can buy or sell Ethereum with fiat currency.
Ethereum Price ATH
Nearly a year back in March 2020, amidst the covid-19 crisis, Ether’s (ETH) ‘s price was $220. In December 2020, ETH peaked at $740, representing a growth of 450% in 2020. In February 2021, Ethereum has surpassed all its previous milestones, and the price of ETH is $1900. The unprecedented growth in Ethereum’s price has led to investors drawing their attention towards the second leading cryptocurrency.
Let’s take a look at some of the factors that contribute to the rise in Ether’s prices.
Ethereum Blockchain Network
Unlike Bitcoin, which facilitates peer-to-peer transactions of its currency BTC, Ethereum enables several set of functionalities. The Ethereum blockchain facilitates the development of decentralized applications and smart contracts on its network. Decentralized applications are open-source protocols developed by coders and are not controlled by a centralized entity. Instead, operations are managed and controlled by smart contracts. These are programs that automatically execute when pre-defined conditions are met.
DApps and smart contracts can be developed on the Ethereum blockchain, and Ether is the cryptocurrency that enables interaction with these programs. Moreover, the Ethereum blockchain offers a platform to build blockchain applications.
The Rise of DeFi
The functionality of Ethereum to develop dApps has been one of the innovations behind the surge of Ether. In 2020, we saw the rise of decentralized finance or DeFi, decentralized applications primarily built on Ethereum blockchain. DeFi is an alternative solution to traditional financial services that facilitate services like borrowing and lending without the need for centralized institutions like banks.
As of February 2021, there is more than $40 billion locked in DeFi protocols. Users can lend or borrow crypto through smart contracts and interact through Ether (ETH). The rise in DeFi has subsequently led to an increase in the need for ETH.
One of the significant developments that will roll out in 2021 is the launch of the Ethereum 2.0 blockchain. The upgrade addresses various issues in the current version of Ethereum blockchain. First and foremost, the upgrade will increase the scalability for ETH transactions. In other words, the transactions will be processed at a much faster pace with low transaction fees as compared to its current version.
The congestion of ETH transactions owing to the rise of DeFi protocols has led to its network charging high transaction fees for processing. The upgrade to ETH 2.0 primarily solves this challenge facilitating scalability in the blockchain. The shift of ETH 1.0 to ETH 2.0 has already begun in 2020, and we will continue to see developments in 2021.
Institutional Interest is Rising
In 2020, we saw the rise of institutional investment in Bitcoin. The latest survey and analysis suggest that investors are drawing their attention towards Ethereum as well. Recent research reveals that a growing number of institutional investors have taken positions in ether, the native currency of the Ethereum network, for its substantial returns.
The primary reasons for the increase in attention towards Ether include its evolving potential as a store of value and its status as a digital commodity required to power transactions on its network. After the recent surge, retail investors are also flocking to Ethereum to capture the gains. User activity and trading volumes have significantly increased for Ether.
How to Buy and Sell ETH on XanPool
The recent surge in Ether’s price and latest developments has led to an increasing number of people wanting to invest. XanPool is an internationally compliant fiat-gateway software solution that facilitates the buy and sell of Ether using a variety of payment methods.
To initiate a transaction, you simply need to sign up on XanPool. To sign up, fill the form by entering your necessary details. You need to verify by clicking the verification link sent to your email address. To buy or sell Ether, simply proceed to the Xchange tab available on the dashboard. You can choose from a variety of local payment methods available on the XanPool interface. Currently, it supports its services for several countries, including India, Hong Kong, Singapore, Malaysia, Philippines, Thailand, Vietnam, and Indonesia.
To buy Ether, add your wallet address for ETH and click on Xchange. To sell Ether, select the favorable fiat currency you wish to exchange for and simply add your local payment details. XanPool offers a user-friendly interface and easy procedure for novice and expert investors to exchange Ether with their local payment method.
Furthermore, the XanPool architecture allows a secure transfer of your digital currencies or fiat money in your desired currency.
Over the years, Ethereum has grown in its predominance, popularity, and functionality. Moreover, use-cases of its blockchain facilitate its usage for broader applications other than peer-to-peer transfers. The rise in interest from institutions and retail investors also gives a positive outlook on this cryptocurrency’s future. Whatever the valuation, the future of ethereum as a platform looks bright.