Since its launch in 2015, Ethereum has become one of the leading cryptocurrencies, posing tough competition to Bitcoin. Although BTC was initially the only face and heart of the crypto world, Ether has quickly risen to become the second-largest digital asset due to its innovation in the crypto sphere.
Presently, the price of Ethereum has declined significantly and fallen to a six-week low level. As per market reports, Ether plunged into an intraday low of $2,668.60, its lowest mark since March.
In light of such statements and the innate potential of Ethereum, many people are buying and selling the coin dip enthusiastically with some renowned crypto exchange brands. Bitnomics is an exchange service provider with a fully-featured platform and an easy-to-navigate dashboard, allowing customers to efficiently approach the digital currency space. The firm also provides quick order executions to help crypto enthusiasts stay above the competitive market.
The immense popularity of Ether is attributable to its smart contracts-based infrastructure, which enables developers to power new tools, NFTs, decentralized applications, etc. Moreover, smart contracts have a wide range of applications in the tech world, primarily for gaming, music, entertainment, and DeFi, making them one of the most popular crypto trends in 2022.
Factors that are bolstering Ethereum’s popularity
1. The Proof-of-Stake Shift
Unlike Bitcoin’s proof-of-work model, Ethereum has decided to switch to a more energy-efficient proof-of-stake approach, a newer way of approving transactions. In contrast to the PoW validation system (mining), the PoS protocol delegates the validation power to network participants according to their staked or locked coins. Furthermore, the PoS protocol also stands out due to its environment-friendly, cost-effective, and enhanced security structure relative to the former model.
2. DeFi’s Integration With Mainstream Finance
The decentralized finance or DeFi, a hallmark of Ethereum blockchain, has continued its integration with the mainstream financial sector. For example, Cake DeFi, one of the fastest-growing fintech platforms in the crypto market, has indulged in a multi-million dollar partnership with FACEIT, a leading platform for competitive gaming. Such developments can remarkably propel the Ethereum adoption as more and more platforms are integrating the DeFi technology.
3. The Ethereum Movie
Striving to gain more attention from the participants, Ethereum’s creators have now come up with a very unusual idea of releasing the Ethereum movie named ‘The Infinite Machine’ with Blade Runner’s director Ridley Scott. The director would be taking the digital currency’s history to the big screen under his production name, and a community stakeholder would fund the project through the Decentralized Autonomous Organization (DAO).
Unlike Bitcoin, Ethereum is a software program with no host, and developers can build blockchain-based applications. Applications like crypto exchanges, insurance systems, and gaming can run without a company’s control.
5. Strong Backers
Besides its innovative infrastructure, other factors also boost Ethereum’s popularity further. Mark Cuban, a billionaire, and keen Ether enthusiast is constantly boasting about his affinity for the coin. Cuban favors Ethereum due to its utility and encourages the crypto community to capitalize on this digital asset. For those interested in diving into this trend, Bitnomics offers low fees when buying or selling crypto with entirely safe and secure transactions.