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Ethereum has been on a ride in the last few days. Its price has been going from high to higher and the trend seems to continue.
This comes after a consolidation period that saw its price dip by over 50% from its all-time high earlier this year. Analysts predict that Ethereum could be making the first steps towards hitting a new high of 10,000 dollars.
We are in the setup most buyers have been waiting patiently for the last few months. To understand why this is the best time to buy Ethereum, you need to understand the below aspects driving its price.
Best performing Altcoin
Ethereum comes second to Bitcoin in the market valuation making it the leading altcoin. A position the coin has held for many years.
As investors seek to diversify from Bitcoin, Ethereum has become the altcoin of choice hence part of the reason it has been growing.
With the levels of inflation growing fast in the last few months, investors are shifting their money to crypto. This is because of the benefits they offer due to their decentralized nature.
Ethereum is becoming a top choice as most investors consider it a safe asset. This will likely continue pushing its price higher.
Continuous Implementation of the London Hard Fork Update
Ethereum continues to implement fully the update it did earlier this year. This historic update focuses on key aspects of the Ethereum network such as changing the previous use of the Proof of Work concept to the Proof of Stake concept.
This change is meant to eliminate the traditional ether coins mining method due to its reliance on the intensive use of energy. Hence, it will make the coin more environmentally friendly helping push its acceptability.
Another crucial change is the introduction of a coin-burning protocol. It is meant to reduce coins supply to make it deflationary.
As per the watchtheburn website, over $3 billion worth of ether coins has already been burnt. This is a significant number and it is helping boost the price.
As more burns occur, the price of Ethereum will keep rising to bring good returns to the buyers.
Uptake of the NFT technology
As the leading coin in the development and deployment of the NFT technology, it is well placed to enjoy the benefits of NFT growth.
Users continue to embrace NFT as can be seen with the increasing transactions on the NFT platforms. Barely in existent a few years ago, millions of dollars are transacting daily in this market.
As blockchain technologies continue to develop, the market will keep expanding and with it, Ethereum will benefit. Although other networks are also developing their NFT capabilities, it is ahead and could maintain this lead for a long time in the future.
Most investors agree that Ethereum is one of the high potential coins in the market currently. Its innovation-led strategy is accelerating its market value helping it to maintain its top position.
As an investor, this is the right time to buy Ethereum because most of the conditions are in favor. However, you need to remember that investment in cryptocurrencies remains highly risky. Hence, ensure to have adequate market knowledge before investing.