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Ethereum: why is it less volatile in comparison to other cryptocurrencies?

Because Ethereum receives more investment than any other altcoin, it is less volatile. Ethereum often maintains its value better than smaller altcoins in a lousy market, as it has been for the previous few months. The latest trend in the crypto world is Ethereum, and you can purchase them using the ethereum trader.

Ethereum may be less volatile than other cryptocurrencies for a few additional reasons. First, the Ethereum network is significantly more stable and decentralized than most other blockchains. Due to this decentralization, it is more difficult for malicious parties to manipulate the price of ETH. 

Second, the Ethereum platform is constantly being improved by a sizable and vibrant community of users and developers. This activity contributes to stabilizing and reducing the price volatility of ETH. Finally, Ethereum features a variety of built-in measures, including the difficulty bomb and the block reward reduction, that serve to stabilize the price.

Ether is a more reliable investment than other cryptocurrencies due to several variables. First, Ethereum is still a relatively new asset. Thus it is more volatile than more established assets like gold or stocks. However, if its acceptance and use continue to rise, Ethereum is likely to become steadier over time.

Why should one invest in Ethereum?

When you hear the term “cryptocurrency,” if you’re like most people, you probably immediately think of Bitcoin. But ether, a different digital currency, has recently become more well-known.

The native money of the decentralized Ethereum blockchain, which powers intelligent contracts, is called ether. As a result, applications such as smart contracts function precisely as intended, with no chance of fraud or outside meddling.

Since its decentralized platform enables anyone to run apps, Ethereum is frequently referred to as a “global computer.” This distinguishes Ethereum from other blockchain platforms, which are frequently more concerned with supporting a single cryptocurrency. The cost of ether has increased along with the popularity of Ethereum.

One ether was worth approximately $1,000 in early 2018. But by the end of 2019, the ether cost had risen to over $14,000. One of the primary reasons ether and Ethereum are sweeping the globe is this phenomenal price surge.

More people are using decentralized applications.

As was already noted, one of Ethereum’s primary benefits is enabling users to run decentralized applications (dapps). As a result, Dapps and conventional apps are frequently contrasted, although some significant distinctions exist.

Traditional apps are centralized, meaning that only one party has control over them. This centralization may result in issues like fraud, censorship, and downtime. Dapps, in contrast, are distributed and decentralized. This makes them significantly less susceptible to censorship, fraud, or downtime because no one entity has control over them.

These benefits are causing more people to use dapps. Ethereum also grows in popularity as dapps do.

A sizable development community supports Ethereum.

The fact that Ethereum has a large developer community is another factor in its rising popularity. On Ethereum, thousands of developers from around the world are creating applications. Ethereum’s decentralized development community makes it one of the busiest and most active blockchain ecosystems.

Important businesses and organizations use Ethereum.

The fact that well-known businesses and organizations are adopting Ethereum is another indication that it is becoming more widely accepted. For instance, Microsoft has introduced Azure Blockchain Services, an Ethereum-based platform. As a result, building and deploying blockchain applications on Azure is made simple for developers by Azure Blockchain Services.

Ethereum has a strong marketing presence and brand.

Additionally, Ethereum gains from having a powerful brand and marketing presence. The non-profit entity that created Ethereum, the Ethereum Foundation, has been very active in promoting Ethereum and expanding the ecosystem.

Many additional people and groups are actively marketing Ethereum in addition to the Foundation’s efforts. This comprises well-known YouTubers and influencers who have promoted Ethereum. Finally, institutional investors are starting to show interest in Ethereum.

The cost of ether has increased along with the popularity of Ethereum.

The adoption of Ethereum by large corporations, the sizeable development community, and the rising institutional interest are just a few factors contributing to its increasing popularity.

The cost of ether will probably rise as long as Ethereum remains popular. So if you are considering investing in Ethereum, the moment is right to do so.


Ethereum is less volatile than other cryptocurrencies for several different reasons. One explanation is that Ethereum has a wider variety of uses than other cryptocurrencies. This provides excellent stability for the Ethereum network and price. 

The Ethereum team has also taken action to lessen volatility with projects like the DAO hard fork and EIP-2. Lastly, Ethereum has a much larger market size overall than other cryptocurrencies, which also helps to lessen volatility.

About the author

Jamie Moses

Jamie Moses founded Artvoice in 1990

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