The price of Ethereum is again setting an all-time high. In today’s trade (10/5/2021) Ethereum managed to redeem the price of US $ 4,172.10 per coin.
CoinDesk revealed that currently Ethereum’s market capitalization reached US $ 466.38 billion and since the beginning of the year it has provided a return or yield of 452.27%. The number of coins in circulation reached 115.81 million coins.
Ethereum’s price soared due to the emergence of decentralized financial euphoria (DeFi) and anticipation of technical adjustments this summer, but Ethereum has hurdles that could hinder its rise.
Ethereum is Upgrading to Ethereum 2.0
In addition, Ethereum is being upgraded to Ethereum 2.0 to solve the problems that have been happening on the Ethereum network which will be especially useful in supporting decentralized finance which is ready to welcome an Ethereum upgrade.
Inthe Ethereum upgrade has announced the proof of staking roadmap, including the sharding feature, a long awaited feature.
Sharding will expand Ethereum’s capacity to process transactions by dividing the database into 64 new mini blockchains. This is what will solve the bottleneck on the blockchain network.
Many People Use NFT
This price increase also occurs because of the large number of uses of the non-fungible token (NFT) auction system which makes it easier for art workers such as animators, photographers and even technology creators such as developers to sell their work by auction. NFTs mostly use the Ethereum blockchain network and their auctioneer payments also use these tokens.
Ethereum is a platform for DeFi and NFT. Both are currently in hype. Hence, the price of Ethereum is increasing.
In addition, the EIP-1559 upgrade will occur in the middle of this year. This is also a potential future increase in the price of Ethereum. EIP-1559 will burn or burn or destroy Ethereum. This is one of Ethereum’s ways to reduce the maximum supply in the future.
Ethereum has shortcomings because of its unlimited or unlimited supply. So, the supply of Ethereum will decrease in the coming years. The rarer the supply of a crypto asset, the higher the price. This is the reason for the future increase in Ethereum.
Read now: Crypto Lovers, Wanna Mining Bitcoin?
