Categories: Ethereum

Why The Price Of Ethereum Has Risen by 5,700% During 2017

Click here to view original web page at

The price of the Ethereum network’s native token, Ether has risen by over 5,700 percent in 2017. The market valuation of Ethereum recorded a 64-fold increase from $700 million to $45 billion, officially becoming the best performing cryptocurrency in the market year-to-date.

Billionaire hedge fund investor and former Fortress executive Mike Novogratz expressed his optimism in regards to the short and mid-term price trend of Ether, stating that Ether is at an optimal position to lead strong rallies and sustain upward momentum.

“Just in the last few days ethereum has started to move, and I actually think it’s going to put a new high soon. I think we end the year at close to $500 in Ethereum,” said Novogratz.

Several analysts believe that the Ethereum market cap has risen mostly due to the exponential growth of the initial coin offering (ICO) market. By the end of 2017, ICOs are expected to have raised a total of $3 billion, given that more than $2.8 billion has been secured by ICO projects throughout the past 11 months.

But, another reason for Ethereum’s rise this year is the increasing amount of activity from Ethereum developers who work on implementing new technologies to improve the network.

One notable project is the latest Byzantium hard fork which saw the integration of Zcash’s ZK-SNARKs, effectively enabling private or anonymous transactions to be processed on the Ethereum network. Currently, it is not possible for commercial decentralized applications to settle anonymous transactions on the Ethereum network. But, the Ethereum development community has made significant progress with the technology, given that a confidential ZK-SNARKs transaction has been processed on the Ethereum testnet.

In a study released in July of 2017, Ivey Business School professor and researcher JP Vergne revealed that the most accurate predictor of a cryptocurrency’s exchange rate, or price, is the developer activity around the cryptocurrency’s blockchain network.

“We found that the best predictor of a cryptocurrency’s exchange rate is the amount of developer activity around it,” said Vergne.

The statement of Vergne based on the findings of his study entitled “Buzz Factor or Innovation Potential: What Explains Cryptocurrencies’ Returns?” has certainly been true, given Ether’s 5,700 percent increase in value this year.

Non-ICO Decentralized applications such as EtherDelta and CryptoCribs have also started to demonstrate significant commercial success, and have begun to compete against centralized systems in the cryptocurrency market.

As Coinbase co-founder Fred Ehrsam noted, decentralized exchange protocols built on top of the Ethereum protocol could become a major factor for the long-term price surge of Ethereum, if decentralized applications can challenge multi-billion dollar cryptocurrency trading platforms like Coinbase in the upcoming years.

“Zooming out a bit, the future of decentralized exchange is mind boggling. The number and scope of assets that become tokenized will exceed what we see in current financial markets by orders of magnitude. Thanks to decentralized exchange protocols, those tokens will be tradable on unified global markets,” wrote Ehrsam.

Ultimately, the strong performance and rapid growth rate of decentralized applications, combined with the increasing developer activity of the Ethereum open-source development community will contribute to the long-term rise in the price and market valuation of Ether.


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by
Tags: decentral decentralized eth ether exchange platform trading

Recent Posts

  • Bitcoin Business

Rumors CFTC Investigating Bitmex Amid Speculation of Market Manipulation

United States’ Commodities and Futures Trading Commission is apparently investigating Bitmex according to unnamed sources. Bloomberg says :“The months-long CFTC… Read More

4 hours ago
  • Bitcoin Business

Bitcoin Mining Helps Oil Companies Reduce Carbon Footprint

Natural gas acquired as a byproduct of oil extraction has become synonymous with wasted energy. In certain areas, drilling companies… Read More

4 hours ago
  • Bitcoin Business

Crypto Exchange BitMEX Under CFTC Investigation Over US Users: Bloomberg

The U.S. Commodity Futures Trading Commission (CFTC) is reportedly probing crypto exchange giant BitMex. | Source: YouTube/BitMEX The US Commodity… Read More

4 hours ago
  • Bitcoin Business

Pro-Bitcoin Ron Paul Agrees with Trump Over ‘Clueless’ Fed

Donald Trump has gained an unlikely ally in delivering criticism against the central bank. | Source: Getty Images/AFP/Shutterstock/AFP; Edited by… Read More

4 hours ago
  • Bitcoin Business

‘Tip Trump’ Meme Targets POTUS While BAT Cryptocurrency Soars 19%

The BAT cryptocurrency gained 19% after its integration onto a gamer streaming site. Meanwhile, a meme was born as Trump… Read More

4 hours ago
  • Bitcoin Business

China’s Blockchain Industry, 2019 – By Separating Crypto-Currencies from the Underlying Blockchain Technology, China’s Government Helped People Focus on Blockchain Solutions for Various Industries –

DUBLIN--( BUSINESS WIRE )--The "China Blockchain Industry" report has been added to's offering.This report provides a complete and detailed… Read More

4 hours ago

This website uses cookies. We use cookies to collect data about your interaction with our website. The main purpose of collecting information with these cookies is to improve your experience with our site. For more information we encourage you to read our privacy policy.

Read More