Ethereum has had a massive yet steady growth following the 2020 market crash. Back in March 2020, following the pandemic, Ethereum, too, like many others, faced all-time-lows. But as of January 2021, it’s ten-month growth rate has been over 1200%. This performance, compared to the oldest cryptocurrency in the world, Bitcoin, is relatively high. Bitcoin, in the same period, has grown only 700%.
In a way, compared to BTC’s price reach of $40,000, Ethereum has earned nothing impressive. Even the market capital for the company is not as high as the BTC parent company. But, the question remains: what is more significant to an investor? Does the investor care more about portfolios & brilliant numbers? Or do investors have a higher eye for higher income?
Why Ethereum May Bring More Profits?
There could be several reasons to believe in Ethereum’s rising performance. It is reported to increase in price for the rest of 2021 as well. One of the major reasons contributing to that is its demand. ETH parent company is a platform to build blockchain products as well as launch decentralized apps. Recently, it has become the #1 go-to platform for such projects. Ethereum may have serious competitors, including Tezos, Cardano, Tron, Cosmos, and Polkadot. But it still continues to lead the lot.
2020 may have had its lowest lows. But reports indicated that over 1 trillion dollars were transacted throughout Ethereum. This figure is much larger than that of PayPal. The latter has 350 million users. And even though its transactions have never crossed a quarterly $200 billion benchmark.
It is also the leading project when it comes to the young De-Fi industry. The decentralized financial market has grown, especially kicking up since 2020’s summer. The growth of the sector crosses a value of 23.2 billion dollars. That’s a 3300% rate of growth. This also contributes to ETH’s massive climb.