Ethereum (ETH) was launched back in 2015, and since then, it has been the go-to cryptocurrency for smart contracts. Ethereum success, however, is a different matter that can and cannot be measured in its totality.
Well, are you confused? Don’t be, whilst, cryptocurrencies like Bitcoin are used for the transference of currency from one individual to another.
Ethereum being the programmable digital transaction that occurs when specific requirements are met. Its present circulating value is approximately $30 billion Unites States dollars, though this value is just about one-sixth of the value of Bitcoin, its biggest competitor.
Ethereum success vs. Bitcoin success
Bitcoin has remains the crypto market leader ever since it has accounted for 87 percent of the value of the crypto market in 2017, during its boom. Initially, Ethereum was not developed to the rival of Bitcoin; rather, it was designed to complement the king of cryptocurrency. However, the ascending popularity of Ethereum has placed it as the competitor of Bitcoin in the cryptocurrency traders’ eyes.
Although the market value of Ethereum is significantly lesser, the speed at which its blockchain validates blocks is way faster than that of Bitcoin, a minuscule of Ethereum success of its own. The average block time of Bitcoin is about 8 minutes, while the speed at which Ethereum’s blockchain hovers is at about 25 seconds. Nonetheless, both of these are still slow as compared to the banking networks like Visa that can process thousands of transactions at the same time.
Ethereum success: The future?
Right now, Ethereum is at the center of the emerging decentralized finance (DeFi) demand. This growth of Ethereum is being promoted by the increasing interest and investment in DeFi. In 2019’s Q1, around $1.92 million ETH was locked into decentralized finance; by the end of 2019, it rose to almost $3 million ETH.
This trend indicates that as DeFi becomes more prevalent, more investors are expected to seek out Ethereum for smart contract processing. It is expected that by the end of this decade, with higher adaptability in emerging financial markets and among startup firms with technological products, there would be around one billion Ethereum users.