Ethereum has proven again that it is one of the principal coins in the token market by hitting an all-time high of $1,200 end of January. The cryptocurrency that is second to Bitcoin in capitalization has been growing in adoption and price since it was created in 2014 by the Ethereum Network.
The success of the coin is largely due to its utility as one of the coins in the token market that has created a platform for practical application of the blockchain technology. The Smart Contract, ERC-20 is the platform on which most ICOs are built. This has consequently presented the token as a utility.
2017 was the year that Initial Coin Offering came on mainstream as a crowdfunding method. Since these ICOs are mostly based on the Ethereum platform, it created a lot of demand for ether, the Network digital currency. Since then, ETH has not looked back and it doesn’t seem to be slowing down anytime soon.
The most capitalized coins in the coin market mostly fell in price last December. This was probably due to Christmas spending as holiday makers sold their digital currencies, converting them to fiat. This resulted in a large bearish run which the coin market is still recovering from. This recovery has seen Ethereum rise to more that $1,200 on January 29 boosting investor confidence in a digital currency.
Despite its massive bull run from less than $20 in January 2017, ETH has exhibited all the normal characteristics of a digital currency, such as wide fluctuations. There have been instances in which there have been fluctuations of up to 30 percent in a few hours, a trait which has made financial regulators classify digital tokens as high-risk investments.
This has no way minified the overall bullishness of ethereum in spite of the wide fluctuations. That there are many ICOs planned for 2018 Q1 means more appreciation is anticipated.
Granted, 2018 is going to see a lot of activities in the ICO ecosystem, and quite a number of these activities will be regulatory. These will certainly have some effect on digital currencies such as ETH.
Perhaps, none other coins will feel the impact of these regulations as ethereum would since it is the coin that practically piggybacks ICOs, this still has future benefits. There is a general consensus that ICO as a funding model has come to stay, even with regulations.
The crypto community generally sees Ethereum as the driver of the crypto application market even ahead of Bitcoin, the most popular digital token. ETH even conducts higher daily transactions than Bitcoin according to community leaders in eToro, making it a coin that makes things happen.