With Bitcoin undergoing a correction, it was highly anticipated that Ethereum would follow suit. In fact, it did. Ethereum peaked at $225 on May 24, and was down to $130 on May 27, rising gradually touched $200 impress.
Ethereum (ETH) has had a spectacular rally this year, rising over 2700% in 2017. Not just Ethereum, the year has been phenomenal for cryptocurrencies. The rising endorsement of Bitcoin by countries and regulators has lifted the sentiments around cryptocurrencies while activation of SegWit fueled Litecoin and raised hopes for a resolve of Bitcoin’s scaling debate. Ethereum the moment largest cryptocurrency in terms of market capitalization has seen been a noteworthy contributor to this rally.
Ethereum is a decentralized software platform that enables Smart Contracts and Distributed Applications (ĐApps) to be built and race without any downtime, fraud, control or interference from a third party. (Related reading, see: Understanding the Reasons Behind Ethereum’s Price Rise)
During the year, Ethereum (ETH) had moved up by 900% by first week of May. Thus, the real surge happened during May itself. A stream of positive events for Ethereum in a backdrop of supporting cryptocurrency environment has pushed it beyond $200 impress.
On one hand, increasingly start-ups and developers are working on Ethereum based projects while on the other hand, biggest names in the industry are coming together to explore its potential across industries. Ethereum Enterprise Alliance (EEA), a consortium formed in early 2017 added 86 members, including names such as Toyota Research Institute, Samsung SDS, National Bank of Canada, Mitsubishi UFJ, ING, Dinosaur Dog, Merck, Taiwan FinTech organization, iPaynow, Infosys, Vanbex Group, Zerocoin Electric Coin Company and Wall Street Blockchain Alliance among others.
The rising trend of ICOs with firms issuing tokens on Ethereum platform is catching pace too. In the recent past, Melonport and Blockchain Capital acquire successful raised funds via this mechanism, Kik Interactive, Inc. is the latest company that plans to recede the ICO way. Kik has announced its intent to launch of its own cryptocurrency on the Ethereum platform. In 2017, so far, companies acquire raised approximately $180 million vis-à-vis $101 million in 2016 in ICO’s, according to Smith+Crown. (Related reading, see: current Kik Messaging App to Launch Ethereum-Based Cryptocurrency)
The recent correction has been partly because of profit booking and large-volume speculation. However, the quick rebound reflects the confidence. Having said that, cryptocurrencies are bound to remain a victim of volatility despite a positive outlook. Thus, as an investor, its best to follow some general principles of investing. One effective way for cryptocurrencies such as Bitcoin and Ethereum can be to buy smaller portions on dips. (Related reading, see: How carry out Bitcoin Investors Combat Price Volatility?)