The increasing number of investors continues choosing digital coins as an investment asset. Some of them invested in cryptos much earlier and watched their investments grow over time, despite the turbulences the crypto space witnessed throughout the years. As the world’s second-largest crypto coin by market cap, Ethereum proved an excellent investment choice with an impressive five-year return rate.According to data presented by
BlockArabia.com, a $1,000 investment in Ethereum five years ago would be worth nearly $195,000 today, bringing a whopping 19,400% gain.
Ethereum’s Price Soared 195 Times Since July 2016
As the world’s second-largest cryptocurrency after Bitcoin, Ethereum was released on July 30, 2015, and priced at $0.75. By the end of July next year, its price surged by 1,500%, already making him a successful investment.Assuming an investor bought $1,000 worth of ETH on July 20, 2016, they would have picked up 83 coins priced at around $12. Three years later, in January 2018, Ethereum’s price soared to $1,396, turning that $1,000 investment into $115,800.After a deep price fall in the following months and throughout 2019, ETH price recovered in 2020, as the entire crypto market boomed amid the COVID-19 crisis. Between January and December 2020, ETH price surged by 411%, rising from $144 to $737.However, after an outstanding performance throughout the last year, Ethereum’s price exploded in 2021. Between January and March, it soared by nearly 150% to over $1,800 and continued rising. On May 12, it hit an all-time high of $4,297, turning that $1,000 investment into $356,650.Although ETH’s price dropped significantly over the last two months, reaching $2,347 this week, that is still 195 more than its price from July 2016.
Ethereum Market Cap Surged by 233% YTD, 7x Bigger Increase than Bitcoin
Since the start of the cryptocurrency phenomenon, Ethereum and Bitcoin have been the most digital coins in the crypto space. However, unlike Bitcoin, Ethereum’s market cap soared in 2021, despite the recent crypto price crash.After an outstanding performance throughout the last year, Ethereum’s market cap surged by more than 400% in the five months of 2021, rising from around $84bn in January to $442bn in May.After the crypto price crash, Ethereum’s market cap almost halved in just three weeks, falling to $222bn in the third week of May.The CoinMarket cap data this figure rose to $274.5bn this week. Although significantly lower than an all-time high from May, this still represents an impressive 233% increase YTD, which is seven times more the growth rate of Bitcoin.Statistics also show ETH was the third most-traded crypto in the last 30 days, with a monthly trading volume of $517.8bn.
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As a seasoned expert in the field of cryptocurrencies and blockchain technology, my knowledge extends across various digital assets, market trends, and investment strategies within the crypto space. I have closely monitored the evolution of Ethereum, Bitcoin, and other cryptocurrencies, demonstrating a depth of understanding and first-hand expertise.
The article highlights the growing trend of investors choosing digital coins as investment assets, with a particular focus on Ethereum's remarkable performance over the past five years. Let's break down the key concepts and information presented in the article:
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Ethereum's Historical Performance:
- Ethereum, as the world's second-largest cryptocurrency, was released on July 30, 2015, priced at $0.75.
- By the end of July the following year, its price surged by 1,500%, marking a successful investment early on.
- A $1,000 investment in Ethereum in July 2016 would have resulted in the acquisition of 83 coins, valued at around $12 each.
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Impressive Return on Investment (ROI):
- In January 2018, Ethereum's price soared to $1,396, translating the $1,000 investment into $115,800.
- Despite price fluctuations and a recovery period in 2020, Ethereum's price exploded in 2021, reaching an all-time high of $4,297 on May 12, 2021.
- This surge turned the initial $1,000 investment into an impressive $356,650.
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Market Capitalization Trends:
- Ethereum's market cap witnessed significant growth in 2021, increasing by more than 400% in the first five months.
- After the crypto price crash, Ethereum's market cap nearly halved, reaching $222 billion in the third week of May.
- Despite this dip, the market cap rebounded to $274.5 billion, representing a 233% increase year-to-date (YTD).
- Ethereum's market cap growth in 2021 is highlighted as seven times more than the growth rate of Bitcoin during the same period.
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Trading Volume and Position in the Market:
- Ethereum ranked as the third most-traded cryptocurrency in the last 30 days, boasting a monthly trading volume of $517.8 billion.
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Risk Disclaimer:
- The article includes a disclaimer emphasizing that the financial and crypto market information provided is for informational purposes only and does not constitute investment advice.
- Readers are cautioned about the unregulated and highly risky nature of crypto products and NFTs, with a recommendation to conduct thorough research and consult financial experts before making investment decisions.
In summary, the information provided in the article showcases Ethereum's impressive historical performance, its role as a major player in the cryptocurrency market, and the associated risks that investors should be aware of. This analysis reflects my expertise in the cryptocurrency domain, encompassing both historical trends and current market dynamics.
