Ethereum price extended its previous session’s gains to an intraday high of $1,951.88 on Thursday. At that level, it was trading at its highest level since the beginning of June. As at the time of writing, it was hovering around the psychologically crucial level of $1,900.
What’s driving the crypto?
As is often the case, Ethereum- – the second largest cryptocurrency by means of market capitalization – is seen as the main competitor of Bitcoin. In a span of about one month, ETH/USD has rebounded by 87.54%. During the same timeframe, BTC/USD has been up by..
Investors are often keen on whether Ethereum will steal Bitcoin’s spotlight. However, that may not necessarily be an important factor; seeing that they are both used for different reasons. Bitcoin is largely embraced for its direct use while Ethereum often acts as a platform for various banking products and NFTs.
Upgrade test run
As a more relevant driver of Ethereum price, developers have successfully completed the last rehearsal for a crucial upgrade that is set to take place on September 19th. On Wednesday, Goerli – an Ethereum test network – did its final test run for next month’s event that is expected to make main network more energy-efficient and faster.
Notably, the upgrade will have ether’s underlying blockchain shift from the proof-of-work model to proof-of stake. On the one hand, the proof-of-work system operates around cryptocurrency miners who are tasked with verifying transactions. In comparison, proof-of-stake only allows validators with a specified number of tokens to participate. Subsequently, the latter is more energy-efficient.