Ethereum is a prominent cryptocurrency and a decentralized computing platform. Launched in 2015 by Vitalik Buterin and several co-founders, Ethereum holds a strong position in the market behind Bitcoin in terms of market capitalization. Ethereum introduced the concept of "smart contracts," programma that automatically execute transactions if certain conditions are met, significantly expanding the possibilities beyond simple cryptocurrency transactions.
As a platform, Ethereum allows developers to build and deploy decentralized applications (dApps) and has been instrumental in popularizing the decentralized finance (DeFi) and non-fungible tokens (NFTs) sectors. Users don't need to buy a whole Ether, Ethereum's native token, as it can be divided into smaller units called "wei".
There is no physical Ether token, so Ethereum operates purely digitally. Transactions on the Ethereum network are transparent and cannot be censored, facilitating a global, censorship-resistant environment for financial and non-financial exchanges. It operates on a decentralized network of computers called 'nodes', similar to Bitcoin, promoting decentralization. Why Is the
Ethereum Price So Volatile?
The price of Ethereum is highly volatile for several reasons. The cryptocurrency market is smaller and less liquid than traditional financial markets, making significant trades more impactful on Ethereum's price. Additionally, Ethereum's value is closely tied to the adoption and utility of its smart contracts and decentralized applications. Fluctuations in user adoption, technological developments, and changes in regulatory stance can influence demand and supply dynamics, contributing to price volatility. Media coverage and influential opinions also play a crucial role in shaping public perception and speculative activity around Ethereum.