Ethereum prices have surged higher than ever before breaking a new all time high of $1417.31, according to CoinMarketCap prices. The cryptocurrency has reclaimed its spot as the second highest coin at a market cap of $137 billion passing ripple. Ethereum is up over 13,000 percent year over year.
While the whole cryptocurrency market faced an overall decline throughout the past week, ethereum price were skyrocketing by itself. Ethereum gained over 50 percent in the past week alone, while bitcoin dropped 7 percent, ripple fell by 35 percent and cardano fell by 30 percent.
The difference between ethereum and bitcoin is that ethereum has a wider range of uses. The most notable use is ethereum’s ability to process “smart contracts.” Smart contracts are computer protocols to digitally facilitate, verify, or enforce the negotiation or performance of a contract.
Blockchains that can be used for applications like smart contracts can significantly decrease time spent.
Lex Sokolin, Autonomous Research director of fintech strategy, says that bitcoin is essentially digital money, but ethereum is the new infrastructure on which anything can be put. He mentions diverse such as “decentralized Facebook, or the internet of things and sensors across all sorts of devices, to more pedestrian things, like initial coin offerings,” which he says can all be put on that blockchain, he told Business Insider.
While the cryptocurrency market is still super volatile, ethereum co-founder, Charles Hoskinson told CNBC that he believe traders and investors can expect consolidation after a crash.
Hoskinson says that many of these coins will not have strong fundamentals, bad tech, or unrealistic projects which he says they will run into a wall and then eventually fail, contributing to the cryptocurrency market decline.
Dogecoin, an alt-coin, shot up and surpassed a $2 billion market cap last week. The coin, which serves no purpose except for a digital currency, is far ahead of other cryptocurrency that have a strong blockchain behind it.
Jackson Palmer, founder of Dogecoin, said it was concerning that dogecoin has rose this much when the company has not released any software updates in over two years.
Traders and investors now begin to turn over to alt-coins or coins that have a stronger blockchain technology compared to bitcoin. While many may just be a quick pump and dump, many coins like ethereum have a strong future purpose for themselves.