How ethereum increased by $20 billion in market capitalisation

[Flow-er]

The widescale use of the ethereum would normally make it surge by a very high amount. This is the fact at my disposal. The widescale use of the ethereum is actually supposed to contribute to the market capitalization. This is one of the reasons why cryptocurrency enthusiast predicted that ethereum shall surpasse bitcoin in the future. I am not totally against this notion because it is very clear that ethereum may surpass the market Capitalization of the bitcoin in the future. Bitcoin has shown with a very wide disparity that it is the king coin but it is expected that ethereum would overtake it in the future.

Ethereum witnessed an increase in the market capitalization and that's absolutely the best that would come around Ethereum. It showed that many cryptocurrency enthusiasts are using the Ethereum more. It was on the Internet that over $20 billion was added to the Ethereum market capitalization in the last seven days. This is a very huge development and improvement on the ethereum network. I am not really surprised by the increased usage because ethereum have the potentials and that's exactly what was in play.

 

[Suba]

MarketCap is a metric that shows the value of an asset in the market including crypto. The marketcap is heavily influenced by the price of Ether and the amount of supply in circulation. Cryptocurrencies on Coinmarketcap are also grouped using marketcap, the first order will be occupied by coins that have the highest marketcap value and so on. We can't just rely on marketcap in assessing a crypto, even though Ether's marketcap according to your thread is up $20 billion, because marketcap is easy to manipulate with a wash trading strategy.

 

[sincerem]

What @Suba said is very correct. The market can be easily manipulated when it comes to the coins marketcap through a wash trading strategy. Some coin owners do wash trading at times just to deceive some investors thinking the marketcap growing signals positives that the price will skyrocket. Such tricks is a way to attract those investors investing in the coins, before you know the price experience flash dip. And -1000% drop off in price in the last seven days. ICP coin did it, and at the moment the coin is consistent dropping. Those who invested in the coin earlier on since it came into inception around 2017 have been living in regret no doubt. Because, right from time, the coin have been on the downside, it isn't moving to the right track which is a big loss to its early investors and also to those who took advantage of the coin when it showed moment of improvement earlier in 2021. But such improvement didn't last at all, because since then, the coin's value have been on the dip, and their is nothing showing that the coin will be resurrecting any time soon, due to the huge price furlough of the coin.

 

[Lens1000]

The ethereum is one of the coin with great potentials. The market capitalization says it all. The level of acceptance of ethereum is getting increase on a daily basis and that is exactly what was into play lately. The use of the ethereum blockchain is very wide and that is what attracted many investors, including the application developers. The app developers also develop applications on the platform and it also uses the Smart contract for automated fundraising program and that's the basic thing that increases its popularity and acceptability. You would be able to put to use maximally the ethereum network. The market capitalization of ethereum grow tremendously from the thread and it was $20 billion increment. The major thing about the ethereum is that it had a widescale use and that makes it one of the most popular blockchain in history. Don't forget that it was created to solve some shortcomings that was encountered with bitcoin. The only thing that made ethereum widely acceptable was the solidity programming language that was used to design the ethereum blockchain. The smart contracts integration solved lots of issues that was seen with the bitcoin blockchain. Ethereum may compete favorably with bitcoin in the future.

 

[Flow-er]

MarketCap is a metric that shows the value of an asset in the market including crypto. The marketcap is heavily influenced by the price of Ether and the amount of supply in circulation. Cryptocurrencies on Coinmarketcap are also grouped using marketcap, the first order will be occupied by coins that have the highest marketcap value and so on. We can't just rely on marketcap in assessing a crypto, even though Ether's marketcap according to your thread is up $20 billion, because marketcap is easy to manipulate with a wash trading strategy.

The ethereum platform is a very wonderful technology with lots of uses. The increase in the market capitalisation within a short space of time didn't caught me by surprise. I have actually seem this coming and by my calculation, the same scenario may continue to repeat itself on and on. The major factor while the large increase was recorded was because the ethereum blockchain houses many tokens and with the little know I Had around tokens, its production or creation will use the Ether and as a result, ethereum will continue to increase in the number of its uses. So the increase on the market capitalization by $20 billion may continue in the same pace as time goes by. The analysis of ethereum, the second digital currency by market capitalization in the cryptocurrency market revealed that it will likely compete with the king coin in the future. The ethereum has a greater potentials to surge in the future. It will be a wise decision to hold the cryptocurrency for a long-term investment. Holding it will translate to a very big gain for the investors. The statements that you made on the manipulation of the market capitalisation is still a big surprise to me. Could you explain more on this?

 

[Flow-er]

What @Suba said is very correct. The market can be easily manipulated when it comes to the coins marketcap through a wash trading strategy. Some coin owners do wash trading at times just to deceive some investors thinking the marketcap growing signals positives that the price will skyrocket. Such tricks is a way to attract those investors investing in the coins, before you know the price experience flash dip. And -1000% drop off in price in the last seven days. ICP coin did it, and at the moment the coin is consistent dropping. Those who invested in the coin earlier on since it came into inception around 2017 have been living in regret no doubt. Because, right from time, the coin have been on the downside, it isn't moving to the right track which is a big loss to its early investors and also to those who took advantage of the coin when it showed moment of improvement earlier in 2021. But such improvement didn't last at all, because since then, the coin's value have been on the dip, and their is nothing showing that the coin will be resurrecting any time soon, due to the huge price furlough of the coin.

The increased in the number of ethereum market capitalization could be linked to the widescale use of the ethereum. It is the house of so many tokens . This tokens uses the ethereum blockchain for an open ledger recording of the their transaction. This tokens are produced by using the input of the native coin of the ethereum blockchain called the ETH. Without doubt, this will cause a serious spike in the use of ETH and that was what we see on the increased market capitalization of the ethereum platform. This is what caused the major use of the ethereum platform. The $20 million increased I'm the market capitalization is a very good improvement on the blockchain and if it continued with this pace, it will go along way to improving the market value of the coin . The implications is that ethereum may compete favorably with bitcoin in the future if it continues with this pace. It's very glaring that most of the ethereum based tokens called the ERC-20 are performing well on the cryptocurrency market. One of them is the USDT. Now, this stable coin is the most used ERC-20 tokens on the ethereum blockchain . It is indeed a very high increase on the market capitalization.