Ethereum (ETH) is currently going through an interesting period in the cryptocurrency market. The price of Ethereum is hovering around $3,527.75 USD1, with a 24-hour trading volume of approximately $39.64 billion USD1. Over the past few days, Ethereum has been showing positive growth, rising by around 6.53%1.
Main Factors Influencing Ethereum
Network Upgrades: Ethereum continues to evolve with major upgrades. The transition to Ethereum 2.0, which aims to improve the scalability and energy efficiency of the network, is a major focus. The move to a Proof of Stake (PoS) consensus mechanism is a significant step in this direction.
DeFi and NFT adoption: Ethereum is the dominant platform for decentralized finance (DeFi) applications and non-fungible tokens (NFTs). The growing popularity of these sectors continues to drive demand for ETH1.
Competition and Innovation: While Ethereum is a leader in the smart contracts space, it faces competition from other blockchains such as Solana and Cardano, which offer alternative solutions with different technological advantages1.
Regulation: Changes in global cryptocurrency regulations could impact the Ethereum market. Regulatory clarity could both benefit and challenge ETH1 adoption and price.