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The price of Ethereum ETH has given investors confidence this week. ETH started the week trading just above US$1,046.31 on 06 January 2018 dropping two days later marginally below to US$1,016.65. The dip was short lived and ETH showed strong resilience in face of market turbulence rising to a weekly high of US$1430.81 just before closing the week out only slightly below that high.
These price indications have been influenced by a soon expected change in the Ethereum protocol which will allow the network to process more transactions and begin to rival the likes Ripple and perhaps one day Visa in terms transactions per second. The impact of this development has signalled a strong positive response from the market.
In terms of market capitalisation ETH has had a very solid week edging slightly lower initially from US$101 billion down to US$98.4 on 08 January in line with the weeks price trough. In a similar pattern to the price movements of ETH its market cap moved upwards strongly from that low to finish out the week just below its weekly high of US$138 billion. That represents a solid increase of over 36.63%
Another figure that will have Ethereum investors rubbing their hands together will be ETH’s increase of overall market dominance with has risen this week 5.67% from 12.70% to 18.37%. This figure signals a major shift in the broader cryptocurrency market which has also seen market leader bitcoin lose over 5% of its market dominance during the week.
What this could signal is that new entrants to the market are cutting their teeth with ETH. this is because technical indicators suggest a more stable market to gain experience with relatively lower risk
24 hour trading volume began at US$4.7 billion on average rising to a midweek average of US$10 billion. Only before settling again to around the same mark as the beginning of the week closing out at around US$5 billion worth of 24 hour trade.
Trading volume this week has suggested a slight maturing in the Ethereum platform overall. ETH showed strong peaks with regular lulls meaning that the ETH is developing into a more regulated platform with more guarantees for investors.
The numbers presented here seem to be favourable as market conditions and blockchain governance converge to create a climate conducive to growth. Blockchain governance is mentioned here because a the programming development which was mentioned earlier will lead to better market outcomes and a simplified investment stream.
That will mean new entrants to the cryptocurrency markets will find a relatively safer place to hold assets in the form of ETH. In the lead up to the programming changes expect ETH to rally. A 5% increase of market dominance is a truly significant indicator and should give most investors a good deal of confidence in ETH at this stage of its development.
This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.
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