Ether shares tumbled on Wednesday after the cryptocurrency saw an intraday high on Tuesday, rallying up to 17 percent, reaching $1,439. The rally led it just a smidgen below its all-time high of $1,448 that it hit in 2018.
On Wednesday, the excitement came to an end when shares of the world’s second-largest cryptocurrency fell by almost eight percent. As of Wednesday afternoon, Ethereum stood at $1,318.17 per share.
Ether is the Ethereum network’s native cryptocurrency. The blockchain network has skyrocketed 33 percent in a year-to-year comparison. Ether has also surged by at least 800 percent from a March 2020 low. Just two weeks ago, Bitcoin, the original digital currency, saw its all-time-high soar to almost $42,000. Since then, Bitcoin has fallen noticeably, and Ethereum overall has performed more favorably. Popularity in decentralized finance is fueling the growth.
Decentralized finance, also called DeFi, is considered more scalable for smart contracts than central banks or brokerages, or other types of exchanges.
Hsuan-Ting, Chief Executive Officer of Furucombo, said, “More and more people adopting it signals a great future for the industry regardless of whether people are using ETH to pay for something or just holding it to capture the network’s value.”
In fact, according to DeFi Pulse, more than $25 billion in crypto assets are locked into applications built on Ethereum.
Bitcoin was created in 2009 and is maintained without a central authority. Alternative cryptocurrencies, like Ether, followed bitcoin and are also called altcoins.
A blockchain is the digital ledger of the transactions in a cryptocurrency. The Ethereum blockchain started an upgrade known as Ethereum 2.0, which is said to speed up the network while making it more secure. The network has seen a lot of development over the years, some which have been implemented and some have yet to be released.
Critics of Ethereum say the transaction fees are already too high and continue to climb upwards of $16, triple the amount charged in 2018. Compare that to a Bitcoin transaction fee high so far this year of $17.09, which occurred on January 12. That figure was 69 percent lower than Bitcoin’s all-time-high transaction fee of $55.16, which occurred in late 2017.