Ethereum is quickly breaking into the market of cryptocurrencies and many investors view it as a smart long-term investment. Even in the calendar year of 2017 alone, Ethereum grew by 3600 percent. While Ethereum still has a long way to go, these are positive signs for the future. We expect to see an increase in people buying Ethereum in Los Angeles in the near future.
In this article, we will provide a breakdown of Ethereum’s growth. You can expect to learn how Ethereum compares to Bitcoin, why it has continued to grow, how Ethereum has grown with NFTs, and what the future of Ethereum holds.
Why is Ethereum growing so steadily?
Ethereum is one of the most popular and widely used cryptocurrencies, and it is often compared to other cryptocurrencies such as Bitcoin and Litecoin.
In terms of market capitalization, Ethereum is the second-largest cryptocurrency after Bitcoin. As of February 2023, the market capitalization of Ethereum is over $200 billion, which is more than four times the market capitalization of Litecoin, the fifth-largest cryptocurrency.
Compared to Bitcoin, which is primarily used as a digital store of value and medium of exchange, Ethereum has a broader range of use cases and applications. However, Bitcoin remains the most well-known and widely adopted cryptocurrency, with a market capitalization that is several times larger than Ethereum’s.
Ethereum can grow a significant amount thanks to:
- An increase in application uses
- More and more companies adopting decentralized cloud-based applications
- An increase usage of smart contracts
An Increase in Application Uses
Ethereum has a large and growing community of developers, users, and businesses that are using the platform to create and deploy decentralized applications. This network effect has made Ethereum the most popular platform for building dApps, which in turn attracts more developers and users to the platform.
Ease In Adopting Decentralized Cloud-Based Applications
Ethereum has become the leading platform for DeFi applications, which are decentralized financial applications that allow users to borrow, lend, and trade cryptocurrencies without the need for intermediaries such as banks. The explosive growth of DeFi has driven demand for Ethereum and contributed to its growth.
An Increase In Smart Contracts
Ethereum allows developers to create decentralized applications (dApps) using smart contracts, which are self-executing programs that run on the blockchain. This functionality has opened up a wide range of possibilities for businesses and developers, enabling them to build decentralized platforms, decentralized finance (DeFi) applications, and other innovative use cases.
Because of these three things, Ethereum is being used more and more widely. The more the platform is valued, the higher the price of each token. As of right now, it is predicted to grow into the second most valuable cryptocurrency according to the market cap. Although the market seems wildly unstable right now, keep in mind that Bitcoin went through similar price fluctuations and has since leveled out.
Ethereum’s Growth With NFTs
Ethereum has become the leading platform for the creation and trading of non-fungible tokens (NFTs). The popularity of NFTs has contributed to Ethereum’s growth and increased its mainstream adoption.
Non-fungible tokens (NFTs) are unique digital assets that can be used to represent ownership of a wide range of digital or physical items such as artwork, music, video games, or other creative works. NFTs are stored and managed on a blockchain, which is a distributed ledger that allows for secure, decentralized transactions, just like cryptocurrency.
Ethereum is the most popular blockchain platform for creating and managing NFTs, as it has support for smart contracts, which are self-executing contracts that automatically execute when certain conditions are met. Smart contracts are used to create and manage NFTs on the Ethereum blockchain.
To create an NFT on Ethereum, a user typically needs to follow these steps:
- Create a digital asset: This could be an image, video, music file, or other creative work that the user wants to turn into an NFT. It’s important to ensure that the user has all necessary rights and permissions to the asset you’re creating an NFT for.
- Create a smart contract: The user creates a smart contract on the Ethereum blockchain that defines the characteristics of the NFT, such as its name, description, and ownership details.
- Mint the NFT: The user uses the smart contract to “mint” the NFT, which creates a unique token on the Ethereum blockchain that represents ownership of the digital asset.
- Transfer the NFT: The user can then transfer ownership of the NFT to another user through a transaction on the Ethereum blockchain.
Creating an NFT can involve a number of technical and legal considerations, so it’s important to do thorough research and seek advice from professionals as needed. When an NFT is transferred, the ownership of the unique token is updated on the Ethereum blockchain, and the transaction is recorded on the blockchain for transparency and security.
Ethereum’s cryptocurrency, Ether, is used to pay for transaction fees on the Ethereum blockchain, including the creation and transfer of NFTs. NFTs can be bought and sold using ether or other cryptocurrencies, and the value of an NFT is typically determined by market demand and the perceived value of the underlying digital asset. In 2022, NFT’s popularity has continued and the market has grown. Ethereum’s popularity goes up with the demand for NFTs.
Future Potential For Ethereum
Ethereum has been working on improving its scalability, which has been a major issue for the platform. The launch of Ethereum 2.0, which is designed to improve scalability through the implementation of a Proof-of-Stake (PoS) consensus mechanism, works to significantly improve the platform’s performance and help it to scale to meet growing demand.
Ethereum has become a well-known brand in the cryptocurrency world, with a strong reputation for innovation and development. This has helped to drive adoption and investment in the platform, and has made it a popular choice for businesses and developers looking to build on the blockchain. Ethereum has become the leading platform for DeFi and NFTs, which are two of the hottest trends in the cryptocurrency world. The explosive growth of DeFi and NFTs has driven demand for Ethereum and contributed to its success.
Overall, Ethereum’s success can be attributed to its innovative technology, its large and active developer community, and its ability to support a wide range of use cases and applications. While there are challenges and uncertainties that could impact its long-term success, Ethereum’s position as a leader in the cryptocurrency world is currently strong. So, if you might buy Ethereum in Los Angeles, we’d be happy to serve you. While there are still many improvements and evolutions to take place to improve it, Ethereum continues to prove itself as a solid Bitcoin competitor. If you are interested in buying or selling Ethereum, use RockItCoin’s ATMs which you can find all across North America. If you are in Los Angeles looking to use one of RockItCoin’s ATMs, you can easily find one just down the street! Our ATMs are user friendly, fast, and convenient.