The ETH token from the ethereum network made history on May 3, 2021, when it broke its milestone price record. So far, the network had a great year like the rest of the crypto scene, but on this day, its ETH token USD price reached over the 3,000 limits. Only two months ago, the price of the same token barely managed to climb over 2,000 USD and now, another important record is gone as well. As this takes place the wider state of the cryptocurrency market remains relatively stable and without any clear changes in the fundamental values.
Yet, this is clearly not stopping the crypto investors from pouring money into ETH and doing so at the expense of other cryptocurrency tokens, mainly BTC and the wider bitcoin financial ecosystem. All of this is an interesting development and one that many analysts will dive into deeper in the coming weeks and months. At that time, the investors and a growing number of developers will continue to follow the crypto markets as well, looking for signs that ETH is going to put 4,000 USD or other milestones in its sights.
The space for the decentralized finance solution is one of the unsung heroes of the latest bull run in the cryptocurrency markets. Dapps or decentralized applications managed to capture the imagination of the development community and thus open the door to an almost constant stream of solutions and improvements for the actual use of cryptocurrencies. While ethereum always had the ability to execute smart contracts, it managed to really come into its own with the expansion of the DeFi scene.
From here on out, engineers and other experts working in the blockchain field began to create dapps that really pushed the envelope further than ever before. That is the main reason why analysts began commenting that while bitcoin token might be an alternative for money, ethereum and its blockchain stands a chance of becoming an alternative for banking. Of course, the same banking procedures are all taking place in the same network environment, keeping its core fundamental of decentralization and strong internal governance free from any outside interference.
The fundamental strengths of ethereum are the things that make blockchain in general so appealing. However, the bitcoin network did not succeed in growing its potential and technological backing since it took the world of crypto enthusiasts by storm over a decade ago. Instead, it is what many today see as the blockchain 1.0 or the first workable iteration of this technology. It produced a revolution, but much like Web 1.0, it had a lot of space for improvement of all kinds. That is the precise moment when the ethereum network came to the scene. It allowed developers to create much more than a digital currency with a decentralized distributed ledger, even though it did contain it as well. Instead, developers began working first on new coin expansion features, which allowed other teams to build their own digital tokens on top of the ETH infrastructure.
This almost single-handedly led to the first initial coin offering craze and expanded the first bull run of 2017 dramatically. The same period clearly showed, with all of its flaws, that the moment of change is here. Since then, the ICO craze came and went, crushed under the regulatory clampdown in China, and then one that spread across the globe. While the decision to do the same was the right call – most of those ICOs were either outright scams or something that is so badly designed that they very well might be frauds – it did not dampen the potential of this cryptocurrency in the space of decentralized finance. For better or worse, blockchain 2.0 was ready for the future and the world was ready for it in turn.
The present success of the ETH token on the crypto market might have taken some by surprise. For some time now, the process of decoupling BTC and ETH became more and more prominent. In the late winter of 2021, that came with a nasty understanding for the supporters of the ethereum network and its investors. While the bitcoin token price was breaking new grounds almost on a weekly basis, ETH seemed to be drastically lagging behind. It too experienced a period of recuperation from the small lull in the price movement that started with the failed bull run of 2019 and then slid into the March market disaster that coincided – or was produced – by the start of the global pandemic.
Yet, when BTC began its steep climb back into the strong market position, ETH did follow but came nowhere near its previous 2017 price records. Most expected these to fall shortly after BTC did away with its benchmarks of 30,000 USD, 40,000 USD, 50,000 USD, and finally 60,000 USD, but ETH kept hanging back and never delivering on that quick and drastic record-breaking many expected. Now, the same period seems to be in motion with ETH taking over the 3,300 USD milestone. Further financial success is bound to follow, even though most expect a strong period of profit-taking to set in, followed by a potentially strong market correction. However, 4,000 USD remains squarely in sight for the traders and investors.
Next Step Forward
ETH, like so many digital ventures in the age of social media, esports, and streaming service, seems to be only starting the next phase of its journey. While blockchain 2.0 is not the final response to all market demands and blockchain 3.0, free of scaling problems is already on the horizon, the ethereum network is nowhere near its full potential.
That applies to both the technology it uses and offers to its developers, but also the sheer market potential it brings to eager investors. That includes the moment when institutional players also decide to jump in on the action as many did previously with bitcoin, including giants of industry and IT sector like Tesla Motors or Square. Thanks to all of this, the general feeling is that the ethereum network is just starting its next big step forward.