Ethereum price

Looking for a different cryptocurrency than bitcoin? Ethereum might just be what you’re looking for! Why are so many people enthusiastic about this project?

Well, it’s mainly caused by two things: its price (loads of people gained a lot of money from investing in ether), and the very promising developments that are going on regarding the Ethereum network. On this page we’ll take a closer look at the price developments over the past couple of years.

First things first to prevent confusion; with Ethereum we’re referring to the entire network, and when we mention ether, we are talking about the cryptocurrency that runs on the Ethereum network. You’re welcome ;)

Very briefly: through supply and demand. But what determines the supply and demand of Ethereum? Sit back and relax, because we'll explain it to you below!

Ethereum is a network on which developers can build anything. Does the demand for these applications increase? If so, this will have a positive effect on the Ethereum price.

With Ethereum, you can, for example, issue your own tokens, build applications or participate in DeFi.

DeFi stands for decentralised finance. Using this, you can do everything you can do at a bank or exchange, but without intermediaries. Think, for example, of borrowing and lending coins, in order to earn interest on them.

A large part of DeFi is built on Ethereum. Therefore, if DeFi grows as a sector, it could have a positive effect on Ethereum.

Do you know that feeling? Your friend or colleague shows you his vault in BLOX, and his Ethereum has increased by 30%. You want that too!

That feeling is also known as FOMO: Fear of Missing Out. If prices are rising fast, a hype is created. Everyone wants to buy at the same time in order to benefit.

This effect occurs with Ethereum but also with other coins. It's attractive to enter the market, but pay attention. What goes up quickly can also go down quickly.

Ethereum theoretically has an unlimited supply. At the beginning, it is not determined how many coins will be in circulation. This makes Ethereum less scarce than bitcoin.

But an update in 2021 has changed this. With each block of transactions, a portion of Ethereum is burned. This means that these coins will be removed from circulation forever.

Utimately, fewer Ethereum should become available. And that's benificial for the price, because it makes Ethereum more scarce.

However, it's complicated. The amount of ETH that is burned varies from one transaction block to another. That makes the supply of Ethereum difficult to predict.