The price of Ethereum has risen dramatically over the past year. It started the year at under $1 and by mid-November, it had climbed to over $425. In early December, it was trading at about $1,300. This price increase was largely due to the media hype that accompanied the cryptocurrency’s release. Despite the recent downturn, Ethereum’s price is expected to hit new highs in the next few years.
The price of Ethereum is determined by trading volume and liquidity. There is no standard global price, so it varies from exchange to exchange. This makes it difficult to predict the exact price of Ethereum. You can use tools such as the CoinCodex Ethereum price calculator to get an idea of the expected price. Also, the supply of Ethereum is uncapped, which means that there is no fixed limit to the number of tokens in circulation. This is unlike Bitcoin, which has a hard cap of 21 million coins.
Another factor that affects the price of Ethereum is the impact of global events. In early 2015, for instance, a global pandemic called COVID-19 closed borders worldwide, and the resulting effects impacted the global economy. Consequently, the Ethereum exchange rate also took a big hit. Despite its volatility, Ethereum has proven to be a popular investment choice for speculative investors. Its central role in blockchain-based applications makes it attractive to these investors.
