The Ethereum price has reportedly surged to $518, crossing its previous greatest high of $514. Experts attribute the surge to the popular Cryptokitties game.
The Ethereum price has surged to $518, crossing its previous greatest high of $514 established on 29th November.
And leading data providers of the cryptocurrency market, CoinMarketCap, and CryptoCompare, credit this surge to the recent vast trades that took place in the Ethereum and US cryptocurrency markets.
For the past several months, the Ethereum exchange market was dominated by the South Korean market, accounting for a minimum of 30 percent global Ethereum trading. However, the recent takeover of the South Korean market by the US market, is because of GDAX (Coinbase’s flagship cryptocurrency exchange) that has been able to process the majority of the Ethereum trading into the current global market.
Factors That Triggered The Price Surge of Ethereum
While there was no major movement in the Ether price between September and November end, initiation of small gains became prominent in the beginning of December, which was caused by the excitement of the community based on the Ethereum blockchain network developer activities. Moreover, CryptoKitties, an Ethereum based app or (decentralized application), just recently achieved a remarkable success, accounting for as much as 14 percent of total transaction volume of the Ethereum network. This transaction volume is way higher compared to the combined transaction volume of all the other cryptocurrencies, including bitcoin.
Despite the dismissal of CryptoKitties by most cryptocurrency community members, Balaji Srinivasan (CEO of Earn.com) and Vitalik Buterin (Co-founder of Ethereum) express an opinion that CryptoKitties shows that the possibilities of digital assets intermediary-free trading are limitless.
In fact, Balaji emphasized that CryptoKitties are important because they allow digital assets to be traded internationally in a frictionless manner on any blockchain, something that was foreseen by Fred Wilson, an outstanding venture capital investor.
Fred Wilson had spoken highly of Rare Pepe, a decentralized game (collectibles-based) earlier this year as a system that demonstrated how useful blockchain could be. Wilson had explained that Rare Pepe showed how blockchain can be utilized to sell, buy, transfer and hold digital assets, and because of their value they can be traded in exchange for various other digital assets on the global online marketplace.
The Future Of CryptoKitties
CryptoKitties incorporates a system that processes digital asset peer-to-peer trading in a frictionless manner, which will prove fruitful if added to the finance sector globally. For example, using necessary solutions and efficient scalability, large-scale exchanges and stock markets can adopt a potentially similar system through the utilization of Ethereum blockchain.
Ethereum seems to have a bright future to perform the role of a decentralized protocol with regard to decentralized applications, thanks to the enthusiasm and optimism demonstrated by the current market.