How Ethereum's Recent Bounce Shows The Coin Has A Strong Value Proposition

in times •  last year 

The crypto world is no stranger to volatility, almost every coin is affected by the slightest changes in market sentiment.

But it's been a while since we've seen anything like what we're seeing now: Ethereum (ETH) price has gone from $53 to $85 in less than two weeks. That's a 145% price increase and it's not over yet.

Most of the time, when a cryptocurrency experiences such a spike, two factors come into play: speculation or demand-side momentum. Speculation occurs when investors believe that the price will continue to rise and will sell their positions to newly joined buyers at a lower price, essentially causing the price to move higher before the last seller runs out of money. and force the price down again.

Demand-side drivers arise when businesses start using cryptocurrency as a form of payment or see an opportunity to add it to their offerings as a way to differentiate themselves from competitors that do not. accept it as a payment method (or because they don't accept it as a payment method). don't feel comfortable accepting crypto payments).

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