On January 04, 2021, the Ether passed the 1000USD mark; the second largest capitalization cryptocurrency registered a gain of more than 40% between January 1 and 18 to reach a new ATH (All Time High) on January 19, 2021. The ether price has thus surpassed its historical record of 2018; it is currently trading around 1410 USD.
Over the last few weeks, the Ethereum Foundation Ether has outperformed by about 81% compared to the 26% of Bitcoin in their respective USD pairs.
Investors tend to follow Bitcoin and its new historical highs on a daily basis.
But let's not forget that there is also the ether, the cryptocurrency associated with the Ethereum blockchain.
Launched in 2015 by Vitalik Buterin, a Russian-Canadian developer, Ethereum is the second blockchain in terms of value added after Bitcoin, allowing the development of decentralized applications, called Dapps.
Ethereum's Blockchain network is different from that of Bitcoin, which is only focused on peer-to-peer payment. Tens of thousands of developers are building applications on Ethereum for the financial, entertainment, cloud and real estate sectors.
Ethereum is the world's second largest crypto in terms of market capitalization, behind Bitcoin, with a value of $131.5 billion in 2018.
As Ether soars to a new record, Bitcoin consolidates with low volatility.
Over the last few days, Bitcoin has been trading between $34,955 and $37,850 showing a consolidation with low volatility. While BTC is consolidating, many Altcoins are catching up. Altcoins such as Ether and Monero have all jumped in value while Bitcoin has experienced a decline.
On Sunday, January 17, 2021, the price of Bitcoin had fallen by more than 6% in the last 24 hours; on that day, its price dropped to a low of 37,194 USD after having reached its historical high a day and a half earlier.
While the BTC is consolidating, many Altcoins are catching up. In the case of the ETH, its price is still rising by more than 4% and was trading on Sunday at $1,285 per token.
This rise in the price of ether coincides with what traders call 'the alt season', a period when many altcoins are strengthening, especially when Bitcoin experiences small price movements.
The Alt season or alt season occurs when Bitcoin is on the rise and investors are looking for high-risk investments. Altcoin generally experiences larger price movements because its low liquidity makes it vulnerable to extreme volatility over short periods of time.
Ether had passed the $1500 mark, an all-time high since its launch in 2015.
Initially, the Ether cost only a few dollars; on January 3, 2021 it was the second crypto in terms of capitalization and passed the symbolic $1,000 threshold before dropping back to around $940 on the morning of January 4.
The last time ETH reached a price around 1500Usd was in January 2018. At that time, ether had risen more than 60 percent in one week.
According to Coindesk, the digital currency had reached a record high of 1432 dollars before erasing some of those gains.
'The rise in ether prices reflects the growing popularity of ethereum as a platform for decentralized applications. Over the past year and a half, we've seen that the majority of tokens issued at ICOs and traded on exchanges have been encrypted to run on the ethereum network,' Thomas Glucksmann, APAC's business development manager for the cryptocurrency exchange Gatecoin, told CNBC by e-mail.
Google Trends data also shows that Google's 'Ethereum' searches reached a new ATH, surpassing that of January 13, 2018, when the price of Ether reached its historical high of $1,432 USD.
The word 'Ethereum' is more searched than ever in its history. On January 08, 2021, Google Trends data revealed that the number of Google searches currently performed for 'Ethereum' is at a record level, eclipsing the interest of searches at the height of the last bullrun of the ether (ETH).
The previous peak in popularity of the term Ethereum was reached on January 13, 2018, the highest level ever.
Interest in research on Ethereum is at an all-time high, but the same cannot be said for research on 'Bitcoin', which represents only 65% of its peak popularity on December 23, 2017.
The price of ether has jumped by 483% in 2020. This is more than Bitcoin, which made +303% last year. Ethereum's recovery now stands at $110 billion ($570 billion for Bitcoin). The end of 2020 and the beginning of 2021 will set many records in the cryptocurrency market. First of all, the price of Bitcoin has exceeded $30,000, a historic level.
The number of Ethereum addresses passed the 50 million mark, according to the specialized site Glassnode, or more than 48% over one year. This is mainly due to the growing interest of institutional investors in ether (in addition to bitcoin).
Ether now settles 12 billion dollars of transactions per day; 3 billion dollars more than Bitcoin.
On January 19, 2021, Ryan Watkins of Messari tweeted that Ethereum's daily trading volume 'is becoming parabolic', along with a graph showing that Ethereum and Ethereum-powered stablecoins have processed $12.3 billion in trades in the last 24 hours - eclipsing Bitcoin and BTC's $9.3 billion.
According to the Blockchain Center's 'Flippening Index,' which uses eight key measures to determine whether the Ethereum network has outpaced Bitcoin in terms of size and activity, Ethereum has come 63.5 percent of the way to reversing Bitcoin.
As Cointelegraph reported, the Ethereum Network now settles about 28% more transactions per day than Bitcoin (BTC), but still faces high fees due to increased usage.
The data also indicates that the number of Ethereum nodes is 94% after briefly returning Bitcoin several times in recent months.
Gas royalties are part of Ethereum's network. They are the price charged to minors to carry out transactions. This fee is not constant, it fluctuates according to the demand on the network. A transaction can be delayed or rejected outright if it does not reach the miners' threshold.
Gwei is a small fraction of the ETH and is used to measure gas charges on the Ethereum network. According to Etherscan.io, a website that provides data on the Ethereum network, gas charges rose from 64 Gwei on January 1 to 309 Gwei on January 4, 2021, an increase of 382%.
It is explained above that the price of Ether and the daily volume of transactions on the Ethereum network have increased significantly. However, this has a price: an increase in demand on the Ethereum network.
As a result, the transaction fees have risen sharply.
Ethereum's transaction costs have increased by almost 400% since January 1st. This increase has not only led to higher transaction costs for merchants, but has also raised questions about the potential of Ethereum itself.
At the beginning of January 2021, according to IntoTheBlock data, ETH transaction costs reached a new ATH as the price of Ether passed the 1,000 USD mark. The ETH transaction fee reached a high of 1,771,000 USD. The daily gas fees on the Ethereum network rose to 569 Gwei.
The solution to this rising transaction price could come out of the soon to come Ethereum 2.0 network.
Admittedly, the Ether has experienced a new ATH; the crypto-sphere hopes to see the start of the alt season soon, but one wonders if this will happen if Bitcoin continues to climb.
Written by Laetitia Harson, Project Manager
Cartam: Free marketplace for cryptocurrency users
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