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Ethereum Shoots Up, Sharding and Reddit Responsible

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Today the ethereum prices have surged 9 percent up, according to ConMarketCap, the site that aggregates all prices of cryptocurrencies in a curated set of exchanges. The cryptocurrency that is most known by its smart contract features has gone from $672 to $743 in a very profitable day. The chart below shows the evolution of ethereum prices in the last 24 hours and the decoupling that ethereum has today compared with other cryptocurrencies.

Cryptocurrency Price Chart

Ethereum price evolution (Last 24 hours)

As for the reasons why this has happened, we can cite many: Ethereum is a cryptocurrency most known by its relationship with ICOs, but some fear that this same relationship is going to affect the cryptocurrency performance by the amount of traffic that it would represent on the blockchain. The Ethereum Blockchain can manage only a determined number of operations natively, so many people are worried about this. But yesterday Vitalik Buterin, the ethereum founder presented a solution to this problem called “sharding”, that in a sense, segments transactions so they can be processed faster without congesting all the network. This will effectively increase the number of operations that the network can manage without collapsing.

Other reasons for this positive behavior might be in the sentimental part of the market: the Reddit co-founder, Alexis Ohanian, has declared openly that he thinks that Ethereum will reach the 15,000 dollar price before this year ends. And Reddit is also acting in consequence. The news and blogging site is also adding Ethereum as a payment method for the Reddit Gold option and other services that were only available with PayPal payments since Reddit disregarded Bitcoin as a payment option earlier this year.

Also, this rise will keep Ethereum miners happy, since Whattomine, the leading site in mining profitability calculus, shows that Ethereum is one of the best cryptocurrencies to mine with a GPU right now. So it seems that everything is in favor of Ethereum’s growth in the cryptocurrency market.

Ethereum profitability in Whattomine

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