Analysis – 4 key factors that made Ethereum grow 4500 percent in 2017

Ethereum spring is in full swing. Ether had a unit price of $8.52 at the start of the year. It has since reached an all-time high of $352 per unit.. This makes an increase of approximately 4500 percent.

Many factors contributed to this record increase, but four main factors are much more effective.. These are: EEA, ICOs, South Korea and Russia…

Creation of Enterprise Ethereum Alliance (EEA)

In March 2017 Blockchain companies, research labs and global companies, Enterprise They announced the establishment of the Ethereum Alliance. The purpose of this alliance was to collectively advance industry standards and foster collaboration among its various members.

The Alliance wants to work on collaborative projects and contribute to the future of Ethereum’s Blockchain by focusing on scalability, privacy and confidentiality.

Such an initiative undoubtedly gives Ethereum legitimacy.. This also played a big role in the record increase.

The explosion of ICOs

Initial Coin Offerings (ICOs), that is, it can be called “Initial Coin Offerings” even though we cannot translate it fully into Turkish.. Ambitious projects, this way they raise money and fund the project. Senders also receive a stake in the project.. There can be serious gains if the project is valued.

Smith + Crown, a Blockchain consultancy firm that follows ICOs and their successes.. According to the company, ICOs raised $101 million in 2016.

Since the beginning of 2017, the total amount has grown to over $300 million, a 200 percent increase in less than six months.

Most of the recent initiatives in this field are based on the Ethereum Blockchain for its smart contract capabilities and therefore ICOs use Ether coins. Hence, they were instrumental in raising the unit price of ETH.

South Korea as an Ethereum powerhouse

South Korea’s top 3 digital currency exchanges have integrated Ether into the system. This made South Korea the largest Ethereum market with a daily volume of $335 million.

For the past few months, South Korea has held about 38 percent of the total trading volume of Ether.

Vitalik Buterin’s meeting with Vladimir Putin

Last week, Russian President Vladimir Putin had a meeting with Ethereum’s founder, Russian origin Vitalik Buterin.

Although not many details are given about the meeting, we know that Putin fully supports the development of Blockchain technology.

All these are the four main factors that contributed to the record-breaking price of Ether.. I wonder what’s next?