This whole week has been a seriously good one for Ethereum. The second largest cryptocurrency by market cap saw its price rise steadily over the course of this entire week, largely due to two major positive developments. Which developments were they? Well, they were positive comments of Vitalik Buterin regarding Ethereum’s long overdue shift to proof-of-stake and JP Morgan’s adoption of Ethereum. Let’s take a look on both these events in detail to understand what happened and why it raised the price of Ethereum.
Launch of Ethereum 2.0 not far away
Vitalik Buterin was speaking at Devcon4 when he revealed the stunning news that Ethereum’s proposed shift to proof-of-stake (also known as Ethereum 2.0) is not too far. He said:
“Launch is basically the milestone that we’ve all been waiting for, that we’ve been working toward for the last four to five years, and a milestone which is really no longer so far away.”
Buterin calls Ethereum’s version 2.0 ‘Serenity’, and though he was not specific about when it will come to life, his comments that it’s “no longer so far away” enthused optimism into Ethereum community and pushed Ether’s price higher after a long time. Ethereum currently runs on proof-of-work based consensus algorithm, which is computing power-intensive, inefficient and unscalable. These problems are becoming more and more serious as Ethereum gains adoption.
JP Morgan Adopts Ethereum
In a separate development, JP Morgan revealed last week that it has developed an enterprise version of Ethereum blockchain. Company’s head of blockchain initiatives Mr. Umar Farooq was very positive about Ethereum in his comments. He said:
“We are big believers in Ethereum. There are people outside our firm using Quorum to tokenise gold, for instance. They wrap a gold bar into a tamper-proof case electronically tagged, and they can track the gold bar from the mine to end point – with the use case being, if you know it’s a socially responsible mine, someone will be willing to pay a higher spread on that gold versus if you don’t know where it comes from. Diamonds is another example.”
These two developments collectively pushed Ether’s price 8% higher over the course of this week. The price went up 4% in last 24 hrs alone after JP Morgan’s announcement. The announcement was significant because JP Morgan’s boss Jamie Dimon has time and again criticized Bitcoin and entire crypto space in general. Even a few days back he had said that “he doesn’t give a sh*t” about Bitcoin. At the same time, however, his bank developing an enterprise edition of Ethereum is a complete irony. We’ve also seen similar instances in past.
Anyways, it will be very interesting to see what this current week brings for Ethereum. Let’s watch!