Ether price has seen an incredible increase in the last hours. This cryptocurrency (Ethereum’s native token), crossed $400 dollars’ level and arrived at $458.96 according to Bitfinex exchange. This means that the cryptocurrency grew more than 14 percent in less than twelve hours. Some experts have predicted in the past an ETH price increase surpassing $400 dollars.
Why is ETH in a Bullish Market?
There are some different opinions regarding why ETH is growing so much in the last hours. One of the reasons could be the Casper Upgrade. On Tuesday, the Casper prof-of-stake (POS) protocol upgrade has been released by the Ethereum developer Vlad Zamfir. The intention is to rework how blocks are created and propagated through the Ethereum’s platform.
“The proposal mechanism will initially be the existing Ethereum proof-of-work chain, making the first version of Casper a hybrid PoW / PoS algorithm that relies on proof of work for liveness but not safety, but in future versions the proposal mechanism can be substituted with something else,” reads the paper.
Casper’s white paper aims reduce the complexity of the blockchain. Miners discover and add new blocks through the proof-of-work process (POW), something similar to how Bitcoin works. This process is a very competitive one. Some miners have decided to purchase graphic cards to AMD or Nvidia (among others) and start working in this way. That has reported significant revenues to these hardware producers.
Another reason to this price upgrading could be the drop in difficulty mining. In October the 16th, Ethereum’s mining difficulty dropped significantly, allowing individuals to keep mining. It is important to remember that Ethereum does not need ASIC hardware like Bitcoin. ETH can be mined with GPU’s power, something similar to Bitcoin Cash and other cryptocurrencies.
Despite Parity Hack, Good News Arise for the Ethereum Community
Some weeks ago, the Ethereum community has suffered from a really important hack. Parity, Ethereum’s second most popular client, was hacked on November the 6th. The attack compromised 500,000 ETH that could only be unlocked with a fork in the Ethereum’s blockchain.
The markets reacted smoothly to this information. ETH price passed from $304 to $285 from where later spiked up to $328 dollars. Since then, the price has been growing at a healthy rate and without high volatility.
In the last year, the cryptocurrency market changed to a very competitive one. Bitcoin was always the leading cryptocurrency, accounting for the most market capitalization, volume and price. Since March 2017, Bitcoin has lost more than half of its market capitalization and now it has 52 percent. At the same time, other currencies have started to grow in price, market capitalization and trading volume. For example, Ethereum had 3.87 percent market value at the beginning of the year, it arrived at 32 percent and now it has almost 16 percent.
Bitcoin arriving to the media has brought interest in the cryptocurrency market as a whole and now we can see the consequences. More investors means more money in the cryptocurrency market.
Ether has seen an incredible price upgrading. This year it has grown around 5000 percent, an incredible performance. According to coinmarketcap, at the moment of writing this article, Ethereum is 9.69 percent up. Ethereum has performed the most transactions in the last 24 hours. More than half of the transactions in the market were performed on the Ethereum’s network.