Towards the end of last year, the price of Ethereum was slightly higher than $720, with a total market cap of around $70 billion. At the beginning of 2018, Ethereum climbed and reached its highest price of $1423 on January 4. At this time, the total market cap for Ethereum was $138 billion!
Ethereum grew by about 3000% in the year 2017 and became the second-largest cryptocurrency, placing second behind Bitcoin.
Are you asking yourself, “should I invest in Ethereum?”, “is the price of Ethereum already at its peak?”, or “is Ethereum the best cryptocurrency of 2021?“. Well, the truth is, nobody knows! However, the following information should help you decide whether investing in Ethereum is a good option for you.
The chart below shows how Ethereum has grown over the last few years.
Below are the key events that have most affected the price of Ethereum in the past:
- Ethereum received an investment of around $150 million in May 2016. As a result, its price went up from $1 in January 2016 to around $14.80 in May 2016.
- However, On June 18th, 2016, members of the Ethereum community found out that Ethereum had been hacked. Around $60 million worth of Ether (Ethereum’s currency) was stolen due to a flaw in a wallet. This caused the Ethereum price to drop from the high of $21.52 on 17th June 2016, to $9.96 on the 18th June 2016.
Unlike Bitcoin, Ethereum is not just a digital currency. It is a more advanced blockchain project. This is because Ethereum offers something special — by using Ethereum’s platform, developers can build their own cryptocurrencies.
Imagine that you would like to build a blockchain-based solution for managing the supply chain of your business. Well, thanks to Ethereum, you don’t need to start from the beginning. Instead, you can just build an application on Ethereum’s blockchain. Ethereum makes it much easier for new blockchain projects to launch.
So, is Ethereum your next cryptocurrency to invest in 2021?
I recommend that you think about adding Ethereum to your list, as I think it could be one of the best cryptocurrency to invest 2021.
Julian Hosp, a blockchain expert, said that the market cap of Ethereum could rise to $200 billion by the end of 2021. If Hosp’s prediction is correct, the price of Ethereum will reach up to $2000. Hosp’s reason behind the prediction is based mostly on the ICOs (Initial Coin Offerings) that decided to use the Ethereum blockchain in 2018 & 2021.
Ethereum also plans to improve their technology a lot this year, with new protocols almost ready to go. So, watch out for Ethereum!
To learn more about Ethereum, read our Ethereum vs Bitcoin guide.