The number of dApps on the Ethereum blockchain is growing exponentially. As this trend continues, more users will join the platform, widening its appeal and driving up demand for Ethereum. And the same dynamic applies to DeFi services. With over $170 billion locked in Ethereum-powered financial products, it’s already one of the most popular applications of blockchain technology. And with that type of activity, it’s only a matter of time until adoption becomes mainstream. If that happens, expect Etheruem prices to surge in response.
Ethereum cofounder Vitalik Buterin had some big ideas about blockchains when he first got involved in 2013. A crypto wunderkind who learned about Bitcoin in 2011 while studying computer science in college, Buterin was convinced that blockchains could do more than just power digital currencies. He believed they could also be used to create self-executing contracts, or smart contracts.
Buterin’s idea caught the attention of Ethereum cofounder Joseph Lubin, who helped him develop the concept and launch the Ethereum network in 2015. At the time, Ethereum was just a small upstart competing against Bitcoin, but it had something Bitcoin lacked: a built-in programming language that allowed users to create their own decentralized applications (dApps).
That gave Ethereum an edge, and over time, dApps have become its defining feature. Today, there are over 2,800 dApps on the Ethereum blockchain, ranging from video games to social networks, prediction markets, and even financial services.
More importantly, the success of Ethereum’s dApps has driven demand for its cryptocurrency Ether (ETH). By cutting out banks and other centralized intermediaries, dApps have eliminated the fees that come with them. That means users pay lower costs on everything from loans to insurance premiums. And because Ethereum is decentralized, there’s no bias in who it serves, meaning anyone anywhere can use it without issues such as discrimination or censorship.
As a result of all this activity, demand for Ether has surged over the past few years. From August 2015 to December 2017, Ether’s value increased by 50-fold. But last year brought some changes; Bitcoin stumbled badly while transaction times slowed for Ethereum—mainly because of network congestion.
That’s caused the price of Ether to fall from its all-time high of $1,431 in January 2018 to around $170 today. But that doesn’t mean Ethereum is a bad investment. In fact, there are several reasons why now might be a good time to buy Ethereum.
First, Ethereum’s fundamentals are strong. The number of dApps on the Ethereum blockchain is growing exponentially. As this trend continues, more users will join the platform, widening its appeal and driving up demand for Ethereum. And the same dynamic applies to DeFi services. With over $170 billion locked in Ethereum-powered financial products, it’s already one of the most popular applications of blockchain technology. And with that type of activity, it’s only a matter of time until adoption becomes mainstream. If that happens, expect Etheruem prices to surge in response.
Second, Ethereum is well-positioned to become the global platform for decentralized applications. Bitcoin was the first major cryptocurrency, but its scripting language is limited and doesn’t allow for the same level of flexibility as Ethereum.
Third, Ethereum is backed by a strong team of developers. Vitalik Buterin is one of the most respected figures in the blockchain community, and he’s surrounded himself with an experienced team of developers who share his vision for Ethereum. That gives the platform a solid foundation that will help it weather any storms that come its way.
All in all, Ethereum is a strong contender in the race to become the world’s leading blockchain platform. Its growing ecosystem of dApps, its commitment to decentralization, and its team of experienced developers make it a promising investment opportunity. So if you’re thinking about investing in Ethereum, now might be a good time to do it.