The latest crypto-currency to see a surge in value this year is Ethereum, with the value of its token rising over 7% in just two days.
Ethereum’s recent surge has been fueled by the fact that investors have bought into the cryptocurrency after it hit the headlines in the aftermath of the Paris attacks.
The cryptocurrency is also gaining traction on the internet with the rise of the Bitcoin Cash cryptocurrency and its growing use in the bitcoin exchange market.
Although Ethereum has been the target of a number of cryptocurrency thefts, its rise this year has been particularly impressive, with investors buying in after seeing the price of the cryptocurrency increase by over 7%.
Ethereum is the world’s first cryptocurrency with an immutable public ledger that no one can alter.
The ledger is created and maintained by a smart contract which acts as a “trust” and is verified by a third party.
Ether, on the other hand, has the potential to be used for illegal purposes.
The cryptocurrency has been used to fund terrorism and other illegal activity including money laundering and narcotics trafficking.
The use of the coin for illicit purposes has been a significant concern in recent months.
The rise in Ethereum’s value this month has led some to suggest that the cryptocurrency could see a similar rise in value as Bitcoin, which is currently trading at around $4,500.
Bitcoin is currently the second-most valuable cryptocurrency in the world with a value of about $2,700.
This week’s surge in Ethereum value has led to speculation that the currency could overtake Bitcoin as the second most valuable cryptocurrency, ahead of the world record-holder, Ethereum, which has a value currently of $4.5 trillion.
Erik Voorhees, chief market analyst for digital asset research firm Coindesk, said the rise in ETH value is indicative of investors’ increased confidence in the cryptocurrency.
“Investors have been buying in the token for a long time now,” Voorhoek said.
“I think the price is showing a bit of a rally at the moment.
It’s the perfect time for the price to go higher.”
Voorhoeges explained that investors were looking to make their money back on the gains they’ve made in ETH by buying into the Ethereum blockchain.
“When the price goes higher, people will be able to get more value from the Ethereum platform,” Voolees said.
Ecosystems like Ethereum are very important for the cryptocurrency’s growth as they enable investors to be more secure in the long term, Voorhee said.
However, Ethereum has not been immune to attacks, with a recent spate of attacks against the platform involving hacks and phishing attempts.
Voorhee also believes the recent rise in Ether value is due to the fact it has the backing of the government of China.
“Ethereum has been around for a while now, so there is a very high expectation from the Chinese government,” Voonhees said, noting that it was recently announced that the Chinese Government is going to invest $1 billion in Ethereum.
“If the Chinese go to invest in Ethereum, they should not only be investing in the ecosystem, they also need to have a good understanding of the blockchain.”
The Ethereum team, which consists of developers and researchers from a wide range of different disciplines, are currently working to develop a smart-contract wallet to ensure users are protected from phishing attacks.
Vooleers explained that the value Ethereum has risen due to its blockchain technology is indicative that investors are willing to invest into the platform and understand the risks.
“I would say the biggest risk is that if you are invested in Ethereum you are not investing in its blockchain,” Voulees explained.
“That’s a very real risk for a lot of investors.”