Ethereum, the world’s most popular programmable Blockchain and the launch-pad for most Initial Coin Offerings, is set to breach USD $400 for the first time. Currently trading at $396, the platform which is a little over two years old was still trading in single digit figures barely one year ago.
The $400 USD mark was something that Bitcoin itself achieved in just a little under four years.
Whilst Bitcoin is largely seen as a store of value, the Ethereum network currently hosts a large range of services that are managed by Smart Contracts – snippets of computer code written in a language called Solidity – which require the Ethereum token (Ether) to purchase the processing power necessary to execute the code.
Continuing Speculation That Ethereum Will Surpass Bitcoin
The Ethereum platform offers a programmability layer that Bitcoin’s core developers themselves had once considered but ultimately refused for the world’s leading crypto-currency.
Some commentators have speculated that Ethereum’s more expansive functional value may ultimately result in its price surpassing that of Bitcoin. Bitcoin’s own restricted utility has lead some to call into question its ability to hold an elevated price over the longer term.
The ‘flippening’ had already been predicted for 2018 by a few crypto market analysts earlier in the year but Bitcoin’s recent surge to USD $8000 has dampened those expectations.
Over the longer-term, this flippening event horizon appears plausible if the Ethereum development team manages to find an adequate solution to the problem of scalability which is generally considered to be the platform’s most pressing concern.
A current idea being floated by Vitalik Buterin, Ethereum co-founder and figurehead, to address the scalability issue has been the concept of sharding where nodes no longer store a full copy of the Blockchain but rather a subset.
Whilst the idea is still in its infancy, its successful elaboration – or otherwise – may ultimately prove to be the most important factor in determining whether Ethereum it can challenge for the ultimate prize of leading crypto-currency.