Ethereum Price Surge Is Due To One Singular Factor
The surge in Ethereum price is a reflection of increased adoption of the technology in the industry for BC development.
Most top altcoins have experienced an upsurge within the last couple of weeks. Amid a booming altcoin scene, Bitcoin has sunk to a record low in terms of its share of the cryptocurrencies market, sitting at just 70.5 percent as of Friday.
There seems to be no pattern, though, in price movements among the top cryptocurrencies.
The rise in Ethereum price may have coincided with certain partnerships and developments within the community. However, the CEO and Founder at ether.camp, Roman Mandeleil, thinks that the rise in Ethereum value is more of a reflection of industry adoption.
“I don't think any specific development is the cause of the rise in the price of Ethereum. In my opinion, the surge in price is a reflection of increased adoption of the technology in the industry for BC development.”
One of the developments that Mandeleil notes is Ethereum Harmony.
Mandeleil describes Ethereum Harmony as an independent Ethereum peer that has all the functionality required to manage one's Ethereum funds and use RPC API from any computer.
Released in its trial version in September 2016, Mandeleil says Ethereum Harmony is capable of providing full support and provisioning the full state of the smart contract and can also be used by developers to see the internals of Ethereum and ensure the network works fine.
An expanding industry
Almost a year ago, the Ethereum price surged to new highs with the creation of The DAO but slumped after the hard fork that happened as a consequence of The DAO breach. The event saw the community split into two. Ethereum price remained quite stable in its low state until the recent surge that has seen it rise above $40 as at the time of writing.
As the cryptocurrency industry expands and new users flux into the ecosystem, price becomes less volatile. This is predominantly due to the fact that movements in price, especially in the upward pattern as observed lately, does not depend on isolated events. Most cryptocurrencies show upward price movements mainly because new adopters are entering into the ecosystem, therefore, use case scenarios are on the increase which automatically creates demand for the cryptos and subsequent increase in value.