In this article, we will explore the journey of Ethereum, one of the most popular cryptocurrencies in the world. Since its inception on July 30, 2015, Ethereum has experienced significant volatility but has also seen remarkable growth over time, becoming the second-largest cryptocurrency by total value.
Like many cryptocurrencies, Ethereum is known for its price movements. The crypto’s price has seen dramatic fluctuations, with periods of significant gains followed by steep losses. Despite this volatility, Ethereum has garnered a strong following and is widely used for its innovative smart contracts.
Ethereum, created by programmer Vitalik Buterin, has gained popularity for its smart contracts and the ability to create and trade non-fungible tokens (NFTs). Unlike Bitcoin, Ethereum has no limit to its total supply, making it a unique player in the cryptocurrency space.
The price of Ethereum is driven solely by traders’ sentiment, with no backing from hard assets or cash flow. This sentiment-driven price movement has led to both sharp increases and steep declines in Ethereum’s value over the years.
Let’s take a closer look at the price history of Ethereum and the trends that have influenced its performance over the years.
2015-2016: Ethereum is launched and draws fans
Ethereum was launched in July 2015, with its price initially hovering around $2.77. Over the following months, the price fluctuated before experiencing a significant uptrend in early 2016. By the end of 2016, Ethereum had gained 754 percent, closing the year at around $8.
2017-2019: Ethereum goes mainstream, then hits crypto winter
The year 2017 saw Ethereum gain mainstream attention, leading to a massive price surge. However, this rally was short-lived, and Ethereum experienced a sharp decline in 2018, closing the year 82 percent lower than the previous year. The following years saw Ethereum struggle to regain its momentum, closing 2019 around the same levels as the beginning of the year.
2020-2023: Ethereum soars with low interest rates
In 2020, Ethereum began a strong rally, benefitting from low interest rates and market liquidity injections. The price surged throughout the year, reaching new highs and closing at $737. The following years saw Ethereum continue its impressive run, with significant price fluctuations driven by market sentiment and external factors.
2024: Ethereum ETFs are approved
In 2024, Ethereum received a boost following the approval of Bitcoin ETFs, leading to increased interest in Ethereum spot ETFs. The approval of these ETFs paved the way for further price appreciation in Ethereum.
Ethereum returns by year
| Year | Return |
|---|---|
| 2015 | N/A |
| 2016 | 754% |
| 2017 | 9,395% |
| 2018 | -82% |
| 2019 | -2% |
| 2020 | 466% |
| 2023 | 399% |
| 2023 | -67% |
| 2023 | 91% |
| 2024 (YTD) | 53% |
Source: Data from CoinLore
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.