Ethereum — the second-largest cryptocurrency by market cap — has been the evergreen rival to Bitcoin since the beginning of cryptocurrencies. Ethereum’s unique features and uses have allowed it to see major success since its foundation.
Some even speculate that Ethereum can take over the paramount crypto- Bitcoin with time. This possible shift in market cap is also termed as ‘The Flippening’ which I’ve covered in a previous blog already.
While the future is uncertain, if there’s one point that we can all agree on is the fact that Ethereum is in its prime right now. Even if you don’t agree with it, these 7 reasons might just change your perspective on Ethereum’s value today.
One of the major concerns regarding blockchain technology is its poor scalability. Even the most forefront crypto Bitcoin can only handle a TPS of around 4–7 while Ethereum offers its double with a TPS of around 15.
Did I mention Vitalik Buterin, the founder of Ethereum, is working on providing a TPS rate of 10,000 soon?
#2 Ethereum 2.0
Now, down to what many crypto enthusiasts are awaiting; the completion of Ethereum 2.0. This update does not introduce a new cryptocurrency in itself but is something that will merge with the current Ethereum blockchain. The shift in turning to a complete Proof of Stake (PoS) network is largely hyped too!
A recent survey by Benzinga stated that 56.7% out of 100 investors claimed Ethereum to be the global standard smart contract blockchain.
#3 Environmental Friendly
The environmental effect of digital transactions is a major impediment to their widespread adoption. As its impact advances, more and more investors are trying to find different means to use digital currencies in an environmentally friendly way.
When speaking of energy consumption, data presented by TRG Datacenters denotes the amount of energy needed to power every transaction. The research reveals that Bitcoin requires electricity of around 707 kWh or kilowatt-hour whereas Ethereum requires only 62.56 KWh or kilowatt-hour in comparison.
Even if that number sounds like a lot, Ethereum 2.0 guarantees to cut down on its power usage by 99%.
#4 The London Hard fork
The next thing why Ethereum has been popular is because of its recent hard fork. The “London” Hard fork alters the way gas fees ( transaction fees) are evaluated, making them cheaper than ever while also lowering their volatility. The upgrade also makes it difficult for miners to mine new blocks and is a step forward towards the implementation of Proof of Stake.
Let’s keep everything related to the Ethereum 2.0 update aside for a minute. Even if Ethereum brought no upgrade right now, NFTs alone can boost the entire Ethereum blockchain! NFT marketplaces are in the craze right now, and according to statistics these digital art tokens have soared and their value has peaked to about $2.5 Billion in sales volume.
This is why NFTs are one incredibly major reason why Ethereum is currently on a bull run.
#6 Constant Revisions
Ethereum is constantly changing and reworking. Whether it be switching its consensus mechanism or introducing smart contracts, the Ethereum blockchain is always revising, innovating, and evolving at a fast pace. Take the updates mentioned above for example. These reforms are what make Ethereum up-to-date and attractive for investors.
Ethereum is certainly revolutionizing the world of applications. The Ethereum blockchain is proving to be incredibly dominant in the Dapps industry. Some of its implementations consist of an interface that not only decreases programming time but also makes the process of launching projects faster. Dapps and smart contracts are for sure Ethereum’s competitive advantage and it is a key factor, responsible for grabbing the attention of large communities and organizations.
In a nutshell, Ethereum is backed by several latest updates which are helping to boost its reach. Also, international companies have started adopting and accepting Ether. Ethereum also offers decentralized applications, smart contracts, and NFTs. Hence, Ethereum stands strong in the ring even today!