Ethereum is the second-largest cryptocurrency in the world by market capitalization, with only Bitcoin surpassing it. Since its emergence on the financial market in the mid-2010s, ETH has gained popularity among investors primarily due to its many features. While some feel that the simpler blockchains of other crypto are better, as they’re easier to navigate, many prefer the more complex nature of Ethereum, as well as its many elements. Since its emergence, the platform has been a leader in decentralized systems and functionality, such as financial services and applications.
Ethereum remains a favorite among investors looking to diversify their portfolios, as it is more stable than other options. While there are many cryptocurrencies out there, and they are all subjected to constant fluctuations, the coins that are better established on the market are generally more likely to withstand the shifts and changes better.
During the last year, cryptocurrencies went through a difficult time as prices plummeted quite severely, especially in the context of the crypto heyday of 2021. Many investors were left scrambling to create a successful strategy to see them through the difficult times. Many were worried that their portfolios would lose a significant amount of money and, as a result, sold the remainder of their cryptocurrencies instead of losing even more capital.
Yet, the ones that maintained their assets have reason to rejoice now as prices have steadily grown. While at the beginning of 2023, a sudden surge gave many a reason to be optimistic about the state of the market. Then came regulatory pressures, with lawmakers determined to change the market in a way that would, allegedly, provide fewer risks for investors. Traders have expressed their doubts about this, saying that the efforts are actually a way to force the digital asset market out of existence.
And while many feared that targeting several noteworthy exchanges would create serious problems for the market overall, this has luckily not come to pass. Therefore, while the gains may have been slower than many expected or would have wanted, they remain constant. So far, 2023 brought gains of nearly 60% for Ethereum. Those recorded by Bitcoin are over 80%, which is also good news for the altcoins.
The prosperity of digital gold typically has a good effect on the other currencies as well, giving them a boost and making the market overall more profitable.
Things change very fast in the cryptocurrency environment. In order to keep up with the challenges, you must always be ready to shift your strategy to ensure the largest possible amount of revenue. Since June 15th, the ETH coin has started on a bullish tendency. There were three consecutive days of nothing but gains. And while the movement ceased on June 21st, the momentum is holding, and prices continue to grow.
So, what can investors expect from these changes? The situation is still uncertain for many, but all investors know the changes will undoubtedly impact the larger market. Some have already decided that the best option is to acquire as much crypto now when the prices are relatively low. When values become significantly more elevated, buying would be much more challenging, making profit virtually impossible.
Since the emergence of digital finances, their involvement in standard financial systems has been a point of contention. While many believe it would be positive, as both systems could bring in something the other lacks, others are a little more skeptical. Some find crypto to be a fundamentally untrustworthy asset as it doesn’t have a physical form and is vulnerable to shifts in supply and demand. While many other asset classes are also subjected to these shifts, it’s unquestionable that digital money is generally more volatile.
Crypto investors are also not convinced of the benefits of integrating cyber money into a centralized system. The coins are notorious for their ability to provide transparency through the presence of the blockchain. In many instances, this feature has been one of the catalysts for a trader beginning to invest in crypto. Losing this functionality would seem to many like a violation of crypto’s fundamental principles.
It would seem, however, that a merge between the two is more likely than not to occur in some form or another. Regulators, particularly those in the United States, have been looking to impose legislation on the market. Some banking institutions have started taking the first step towards supporting a crypto launch, particularly of Ethereum and Bitcoin ETFs.
Recently, HSBC Hong Kong announced that its customers can now trade ETH futures as part of a movement to broaden access to cyber asset derivatives. Traders will have access to the futures on the basis of derivative contracts based on commodity exchanges. The move is expected to increase the local’s exposure to crypto, especially as the bank is the largest in the city.
This Swiss city, the capital and largest town of the canton of Zug, is widely recognized among crypto users as the birthplace of Ethereum. It is from here that Vitalik Buterin created the basis of the wildly popular blockchain. Many still consider it to be one of the world’s most crucial crypto cradles. In fact, to this day, the town is referred to as a crypto valley due to the many businesses, enterprises and institutions involved in trading. A Crypto Valley Association was also established in 2018 and has been operational ever since.
Many developers work for companies based in Switzerland due to the favorable laws and regulations for cryptocurrencies. The country is one of the first in the world to come up with a legal framework that most traders saw as a positive thing. However, the community atmosphere has changed, and while a few years ago, many believed in crypto’s potential to overthrow banks, now they are more focused on sustainable growth and returns.
The same can be said for the global community, which also made the shift from a fringe group to a dedicated establishment seeking to see actual results from their investments.