Cryptocurrency price volatility has gripped markets in recent weeks, with ethereum, the second-largest cryptocurrency behind bitcoin, shedding over half of its value. The bitcoin price has also dropped substantially from its all-time high of about $65,000 per bitcoin achieved in mid-April, with erratic Tesla TSLA -0.9 percent billionaire Elon Musk.
“Technologies that began, as described as, bitcoin are moving very rapidly into other parts of the world. The app developers of ethereum are growing at 20x for the past six years straight, much, much faster than Moore’s Law, so that’s where the action is.”
Moore’s law, coined by the engineer Gordon Moore in 1965, posits computing speeds double every couple of years along with the number of transistors per silicon chip. He considered that Ethereum and Bitcoin will vary hugely in the future.
Over the last 12 months, the popularity of so-called decentralized finance—using cryptocurrency technology built on top of ethereum’s network to recreate traditional financial instruments such as loans and interest and designed to replace the role of banks with blockchain-based protocols—has soared, helping the ethereum price rocket.
Meanwhile, the run-away popularity of non-fungible tokens (NFTs), largely issued on ethereum’s blockchain, to digitalize art and collectibles have added another ethereum use case in Ethereum and Bitcoin
The ethereum price rally over the last few months has far outpaced bitcoin’s, with ethereum adding almost 1,000% compared to bitcoin’s 300%, even with ethereum’s recent price crash. The ethereum market capitalization, the combined value of all ether tokens in circulation, has soared to almost $300 billion, just under half bitcoin’s near-$700 billion.
Some think long-awaited upgrades to ethereum, begun at the end of last year and designed to help ethereum scale and reduce its sky-high transaction costs, could help the ether price reach never-before-seen heights.
Mark Cuban, the billionaire investor made famous by the reality television series Shark Tank, has said he expects ethereum’s long-awaited 2.0 upgrade will spark the development of apps that “dwarf” bitcoin.
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