Advertise with us Ethereum Difficulty Chart and Graph Loading chart data...The price of Ethereum (ETH) has surged by 2400% year-to-date, from approximately $8 in the beginning of the year to beyond $200, pushing its market capitalization to around $18.5 billion.The rising price of Ethereum​ isn’t an exception.In fact, almost all cryptocurrencies are seeing an unprecedented rise in price.Here are some of the reasons that explain the rise in its price.The functionality of Ethereum is immense.Ethereum – a decentralized software platform - is like the building block that can be used for multipurpose Distributed Applications (ĐApps) and SmartContracts that run without any third party control in a secure and seamless manner.With its increased application, there is a rise in demand by developers for ether – the crypto fuel for the Ethereum network.As corporations and businesses turn toward exploring the decentralized ledger technology, more and more work is being carried out by developers.

Ether is used as a form of payment made by clients for operating on the Ethereum platform to developers.It also acts as an incentive for developers looking to develop and run applications on the network.(See also: SingularDTV Creating Entertainment On The Ethereum Blockchain) Ethereum is being used as a core by technology giants and corporations to develop customized blockchain​ models.Names such as Microsoft Corporation (MSFT​), JP Morgan Chase Co.(JPM), Intel Corporation (INTC​), and Bank of New York Mellon Corp (BK) are associated with it.The formation of the Ethereum Enterprise Alliance in February 2017 and its subsequent expansion to 116 members recently has generated interest and excitement in the community.Given distinct advantages such as security and energy efficiency, Ethereum will be switched from proof-of-work to a new consensus algorithm under development, called Casper based on proof-of-stake mechanism, sometime later in 2017, as per Ethereum Foundation.This means that anyone holding the core cryptocurrency (ether) can be a validator, and this may explain part of the demand for it.

(Related reading, see: Ethereum To Adopt Proof-of-Stake) Triangular arbitrage between Bitcoin (BTC), Ethereum (ETH) and Ethereum Classic (ETC) supports the current scenario.dogecoin carLastly, Initial Coin Offerings (ICO) are growing in popularity, and some of the most successful firms are raising funds via a digital token built on the Ethereum platform.how bitcoin arbitrage worksIn early April, Blockchain​ Capital, a venture capital firm investing in the cryptocurrency ecosystem, successfully raised $10 million in a record six hours for its first digital liquid venture fund called Blockchain Capital III Digital Liquid Venture Fund, LP.bitcoin cairoThe Singapore-registered fund raised capital via a digital token built on the Ethereum platform.bitcoin mining playstation 4

Melonport is another example.ethereum lowest feesWhile several reasons are cited to rationalize the phenomenal price rise, they still fall short of fully justifying the current trend.dapat bitcoin dengan cepatThe only other explanation here is the strong positive sentiment at play on the back of the potential Ethereum holds.Market capitalisation and Ethereum price as on May 25, 2017* 2:30 am, EST.Ethereum, a rival cryptocurrency to bitcoin that has rallied over 2,700 percent this year, could be due for a correction to the tune of 38 percent, according to one analyst.The cryptocurrency was trading at around $191.78 in the early hours of Friday morning and has been moving within a tight range.This brings ethereum close to a price level which one technical analyst, who looks at historical trading patterns to determine future price moves, said could see a sharp drop in the digital currency.

Nicola Duke, an analyst at analysis platform Forex Analytix, said that if ethereum trades below $170, then it could mean the price falls to $140.This would mark a 38.4 percent decline in the price from Wednesday's high of $227 and around a 27 percent fall from Friday's early morning trading price.Ethereum has fallen from Wednesday's high which could mean traders may start taking profits."The fact we have had that wobble yesterday might mean we see some profit taking into the weekend," Duke told CNBC in a phone interview on Friday.But after falling to $140, which Duke said is a "huge level to buy against", ethereum could rally $100 to $240.This could happen on Tuesday.Duke has so far been correct on her calls on bitcoin.On Thursday, the analyst told CNBC that if bitcoin got close to $2,800 there might be some pullback.The cryptocurrency reached $2791 on Thursday and then declined.It was around $2,571 on Friday morning.Duke said that the bitcoin decline could continue to January before bottoming and then a rally.

Investors have been getting interested in alternative cryptocurrencies to bitcoin given that it has seen a huge rally this year.Ethereum is seen as a good alternative and has been backed by major financial institutions and corporations.A group called the Enterprise Ethereum Alliance (EEA) was recently founded to connect large companies to technology vendors in order to work on projects using the blockchain.Companies involved in the launch include JPMorgan, Microsoft, and Intel.On Tuesday, the EEA announced another 86 firms joined the alliance, which is adding growing legitimacy to the cryptocurrency.A full explanation about ethereum and its appeal can be found here.Daniel Masters, director at Global Advisors Bitcoin Investment Fund (GABI), said that bitcoin is acting as a "gateway" into different digital currencies, which are now becoming more accepted alongside traditional fiat currencies."Some of these currencies are doing a lot better relatively, but the point here is we are moving into this really rich diverse cryptocurrency ecosystem side by side the fiat currency," Masters told CNBC.