How ethereum rose to become a mainstream cryptocurrency
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How ethereum rose to become a mainstream cryptocurrency
Ether Machine, a new crypto venture formed through the merger of Ether Reserve and Dynamix Corporation, is preparing to go public. It raised over 400,000 ether (ETH-USD), equivalent to $1.5 billion, offering the public a new way to access cryptocurrency yields. The news came after a week when the ethereum cryptocurrency surged by over 20%, leading some to predict that it could pass $4,000 and send long-term predictions into the $10,000s. Here’s what to know about ethereum and what sets it apart from other blockchains.
The news came after a week when the ethereum cryptocurrency surged by over 20%, leading some to predict that it could pass $4,000 and sending long-term predictions into the $10,000s.
Ether Machine isn’t the first firm to do this. BitMine Immersion Technologies (BMNR), chaired by Fundstrat’s Tom Lee, announced plans to begin stockpiling ether back in late June. SharpLink Gaming (SBET), a Nasdaq-listed sports-betting technology company, made a similar move in late May when it named Ethereum co-founder Joseph Lubin as its new chairman.
Further adoption of the blockchain into the mainstream in recent months has supported ethereum’s rise, including Robinhood’s (HOOD) introduction of ethereum staking in the US and the passage of the stablecoin-focused GENIUS bill through the US Senate.
Here’s what to know about ethereum and what sets it apart from other blockchains.
What sets ethereum apart?
Ethereum is a decentralized blockchain platform that hosts programmable contracts and other cryptocurrencies. Its native crypto token, named ether but sometimes referred to as ethereum, is now the second-largest cryptocurrency by market cap, topped only by bitcoin (BTC-USD).
A “blockchain” is a digital record of transactions and other data. New “blocks,” or batches of validated records, are added onto the publicly accessible chain, referencing previous ones, so that anyone using a blockchain agrees on the current state of finalized transactions.
“Transactions are entered, and then they are immutable,” Algorand Foundation CEO Staci Warden told Yahoo Finance. “It is about integrity. You know when something is entered, nobody else can mess around with it.”
In addition to ether and other popular cryptocurrencies, over 50% of all stablecoins in circulation are hosted on ethereum, and the platform can also be used to exchange NFTs and more, according to Galaxy.
One major difference in how these transactions take place on ethereum compared to the bitcoin blockchain is that ethereum includes functionality for users to create and use so-called smart contracts.
Smart contracts are programs that can execute financial operations when conditions are met, often used to develop applications known as decentralized finance or DeFi apps. These “dapps” offer a variety of financial services without the middleman of traditional financial institutions.