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Know the reason behind the All-Time High Price of Ether
Ether, the cryptocurrency of Ethereum, is again in the news after it has broken all its earlier records. The prices of the Ether hit $1439.33 on the previous Tuesday. It was its all-time high price after $1432.88 recorded on January 13, 2018.
Ether is thought to be the second-biggest cryptocurrency, with Bitcoin winning the race. It would rather be reasonable to say that Ether's price moves in tandem with the price of Bitcoin. According to the data, Bitcoin has recorded a 20% return to date this year, whereas Ether has registered a nearly 86% increase.All the cryptocurrencies have seen a considerable increase since last year after the idea that these cryptocurrencies, including bitcoin, can recreate traditional financing instruments like insurance and loans.
The explosion in the total value of decentralized finance on Ethereum in 2020 was a significant motivation in attracting new users this year. It is because Ether offers more flexibility. While Bitcoin provides an efficient way to transfer the value between one-another without any intermediate, Ether works more than that. The primary purpose of ethereum is to monetize the operations of smart contracts and dApps.
Ethereum has upgraded the platform to improve the security and scalability. No doubt that there is a tremendous amount of development at the platform since its 2017 high, and now its network will soon be moving from proof-of-work algorithm to proof-of-stake algorithm. It means that only ethereum users will be able to deposit their rewarded ether tokens to secure the network. The number of active developers at Ethereum is increasing at a faster rate compared to Bitcoin. After seeing Ethreum crossing its all-time high, I believe its price will reach a lot higher in the current bull cycle.