Ethereum Price Today: ETH Sees a 7.31% Increase
Ethereum price is on the rise, with ETH up by 7.31% today. As of 8 a.m. ET, 1 ETH was valued at $2,458.93. This marks a significant boost from its 52-week intraday low of $1,500 on August 17, 2023, but still a long way off from its 52-week intraday high of $4,088 on March 12, 2024.
Ethereum: A Powerful Altcoin
Ethereum, launched in 2015, is the most popular altcoin—a term for cryptocurrencies other than Bitcoin. Along with Bitcoin, Ethereum is among the most recognizable forms of cryptocurrency. Over the past year, Ethereum has shown remarkable growth, with its market capitalization soaring to $295.62 billion. This represents a 34% year-over-year increase.
Ethereum and Bitcoin Lead the Crypto Market
Ethereum's market cap is second only to Bitcoin's. Together, Bitcoin and Ethereum make up 71% of the entire cryptocurrency market. Other notable altcoins include:
- Solana (SOL): $81.27 billion market cap
- XRP: $50.43 billion market cap
- Dogecoin (DOGE): $13.98 billion market cap
What is Ethereum?
Ethereum is a blockchain-based network that facilitates secure, decentralized financial transactions. Its native cryptocurrency is known as Ether. Unlike Bitcoin, Ethereum’s programmable blockchain allows for smart contracts and decentralized applications (dApps).
Smart contracts are software applications that execute automatically on the blockchain when certain conditions are met, eliminating the need for middlemen like Big Tech companies. This power and versatility have spurred the creation of various applications, including:
- Gaming
- Social networking
- Gambling
- Decentralized finance (DeFi)
Understanding Gas Fees
Using the Ethereum network isn't free. Users pay gas fees to support its operation. These fees vary based on the demand for transactions and are expressed in gwei, where one gwei is one-billionth of an Ether.
Ethereum's Historical Performance
Ethereum has seen significant price action since its launch.
- July 2015: Ethereum launches.
- October 2015: ETH hits its all-time low of 42 cents.
- January 2018: Hits $1,000 for the first time.
- November 2021: Almost reaches $5,000, hitting $4,891.70.
- Late 2022: Falls under $900 amid a volatile market and high-profile bankruptcies.
2024: A New Era for Ethereum
2024 has brought renewed investor optimism. The Securities and Exchange Commission (SEC) approved several Bitcoin spot exchange-traded funds (ETFs) in January, contributing to the positive momentum. Ether spot ETFs started trading in the U.S. in July 2024, with funds from major players like BlackRock, Fidelity, and Grayscale.
How to Buy Ethereum
You can buy ETH through:
- Crypto exchanges: Binance, Coinbase, Kraken
- Online brokerages: Interactive Brokers, Webull, Robinhood
- Payment apps: Venmo, PayPal
- Cryptocurrency ATMs
Storing ETH requires a crypto wallet, which can be:
- Hardware wallets: Resembling USB sticks, offering high security.
- Software wallets: Apps on smartphones, tablets, or computers.
- Hot wallets: Connected to the internet, convenient but less secure.
- Cold wallets: Not connected to the internet, generally more secure.
Ethereum Investment Options
Investors can explore alternatives to buying ETH directly through various funds approved by the SEC. Notable options include:
- Ethereum Futures ETFs: Bitwise Ethereum Strategy ETF (AETH), VanEck Ethereum Strategy ETF (EFUT), ProShares Ether Strategy ETF (EETH)
- Ether Spot ETFs: iShares Ethereum Trust (ETHA), Fidelity Ethereum Fund (FETH), Grayscale Ethereum Trust (ETHE)
Risk Factors in Cryptocurrency Investments
Investing in cryptocurrencies like Ethereum involves risks. They're known for being extremely volatile. The price of ETH is solely determined by supply and demand, without any underlying tangible assets, earnings, or revenues. Future performance is unpredictable, and while recent years have shown rapid growth, there's no guarantee it will continue.
Stay informed and exercise caution when investing in the dynamic world of cryptocurrencies.
