What did Ethereum experience in 2017? Why did the price of Ethereum skyrocket in 2017?

08/08/2023 17:31 • NFT Newsflash • 96 views

In 2017, what did Ethereum experience? What did the blockchain project Ethereum go through in 2017?

At the end of 2017, Ethereum developers and users started building smart contract applications on the network. This meant that they could use various tools to create their own DeFi applications, which could run on different blockchains. However, to achieve this goal, the price of Ethereum in 2017 reached its all-time high because it was still in its very early stages. Therefore, Ethereum has now developed into a highly scalable application ecosystem. In early 2017, when Ethereum was launched, people seemed to see some claims about Ethereum’s development potential: we believe it is a revolution, not a bubble.

As 2018 came to an end, the price of Ethereum rose to over $10,000, while the price of Bitcoin fell to around $38,000, then rose back above $42,000, and then fell below $20,000. It wasn’t until early 2019, when the price of Bitcoin returned to around $20,000, that it returned to normal. However, despite this, Ethereum still did not reach unprecedented highs – it only took a short month to surpass $14,000.

However, from a technical perspective, 2017 would be the largest hard fork upgrade in Bitcoin history, but such a version has not yet appeared, and because many miners are unwilling to sell their mined block rewards to maintain its growth, a new Ethereum will eventually be launched. According to CoinMarketCap data, Ethereum’s transaction fees were negative in the first quarter of 2019, with an average fee of about $20 per ETH transaction. Ethereum’s trading volume in the second quarter of 2019 decreased by 15%.

Although this number may continue to decline, there is still room for significant increase compared to the same period last year. In addition, in the third quarter, Bitcoin performed better, and its transaction fees were even lower than the total revenue from Bitcoin spot trading.

Why did the price of Ethereum skyrocket in 2017?

Early this morning, the price of Ethereum suddenly rose more than 5% to $400. In just one year from the beginning of 2017 to now, the price of Ethereum has increased from $150 to nearly $200, a staggering 100-fold increase.

The cryptocurrency market in 2017 was also thriving, with various altcoins listing for trading. However, due to the richness and completeness of the Ethereum ecosystem, many people see Ethereum as “digital gold”. And as more and more people have paid attention to Ethereum and its underlying applications and technology developers this year, these new projects have gradually been reported by mainstream media.

So why did the price of Ethereum skyrocket in 2017? There are mainly two reasons:

First, since 2018, the popularity of DeFi has remained high; second, in the first quarter of 2020, Bitcoin’s market value ratio was close to 40%. This led to a surge in the price of Ethereum at the end of 2019. At the same time, due to the continuous increase in DeFi applications, ETH has become a new asset category available for investment. On the other hand, after the recent DeFi craze, the value of locked assets in the Ethereum network has reached about $2 billion, far surpassing Bitcoin, so it may attract more funds to enter this field in the coming years. Another reason is that since January of this year, the number of active addresses of Ethereum has dropped significantly, currently totaling 380,000, an increase of more than 360% compared to the previous month.

The combination of Ethereum’s development and blockchain technology gives it higher utilization and lower cost advantages. Although many users do not use ETH as ordinary cash flow now, for most investors, it is still a cost-effective purchase of DeFi products or services with Ethereum. Because once people have a further understanding of blockchain technology, it can be used as a means of payment and can be used for corresponding consumption.

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