Ethereum Price Rallies Due to Drop in its Network Fee

Making a strong comeback, Ethereum has managed to breach its previous price record with new value stacking at an all-time high of $2645 on cryptocurrency exchange Binance. In addition to the value, the active users of Ethereum have also reached a record high of 771,000 – breaking its previous milestone of the highest 739,000 users in November last year.

According to the Ethereum price prediction, the comeback of Ethereum in the market is largely due to a significant drop in its network fees. The cost has dropped to as low as 54 gwei, and although it is not unusual for the prices to drop on the weekends, the dramatic decline in the charges is something that is fueling the price rally of the ETH. 

Another interesting trend that cryptocurrency experts are pointing towards is the increasing dominance of Ethereum in the crypto domain. This has come on the back of a decline in the value of Bitcoin in the crypto sphere in the last week. The prices of the largest cryptocurrency by market capitalization had seen significant reversals in the previous week, thanks to a number of new developments, including the speculation of a new provision of capital gain tax that the US government is mulling to impose on the investors. 

The increasing scrutiny from the regulators and central banks on Bitcoin and other altcoins have also sparked fears and led to a decline in the value of all major digital currencies, including Bitcoin. Ethereum, on the other hand, bucked the trend and made handsome gains owing to its reduced network fee and increased user base. 

In terms of the potential, ETH has got plenty of it due to its blockchain platform that is used for the development of decentralized applications. Unlike Bitcoin, the scope of application in the case of ETH is very large as its platform can be used as a springboard for accomplishing a variety of tasks, including launching apps and smart contract execution. This diversified scope set it apart from others in the crypto domain. The ETH has got immense potential, and it is capable of outperforming Bitcoin; however, one has to consider many extraneous factors while comparing Ethereum and Bitcoin. In sum, the future of Ethereum looks bright, and its widened scope of operations makes it a vibrant option to invest in the crypto domain.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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