Ethereum hits a record: How much $1,000 would be worth today if you had invested earlier

Ethereum hits a record: How much $1,000 would be worth today if you had invested earlier

Ethereum, the world’s second-largest cryptocurrency, is on a quiet tear these days, regularly hitting new record highs, but doing so without the frenzy of Bitcoin or Dogecoin.

The digital currency hit an all-time high of $2,800 Thursday morning, jumping 273% since the beginning of the year. Compare that to an 86% increase in Bitcoin’s price. (Dogecoin is up 6,388%, but trades for less than 45 cents, making it, arguably, more accessible to small investors.)

The latest surge comes after reports that the European Investment Bank plans to issue its first-ever digital bond sale on the Ethereum blockchain network. The sale will be led by [hotlink]Goldman Sachs[/hotlink], Banco Santander, and [hotlink]Societe Generale[/hotlink], Bloomberg reported.

At the same time, the supply of Ethereum has been dropping as demand increases, driving prices higher. And businesses including Mastercard, UBS, and JPMorgan have been investing in startups that revolve around Ethereum.

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Like any cryptocurrency, though, there’s a risk of volatility. If you’d bought Ethereum the afternoon of April 22 and sold three days later, you’d have lost over $500 per token. But if you took a chance on Ethereum and were in it for the long haul, you’d have reason to celebrate. Here’s a look at what a $1,000 investment in Ethereum would be worth as of mid-morning Thursday, when its value, per CoinDesk, is $2,771.48.

Aug. 11, 2015: Ethereum in its early days cost about the same as Dogecoin does today, just under 67 cents each. That $1,000 investment today would be worth more than $4.1 million.

June 12, 2017: After a slow and steady climb, Ethereum saw its first big spike in value in the spring of 2017. By mid-June it was at $343.42. A $1,000 investment at that time would today net $8,070.

Jan. 9, 2018: The first big cryptocurrency rush saw Ethereum hit a high of $1,405.21. Had you bought at that peak, your investment would today be worth $1,972.

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April 5, 2018: Remember that volatility we mentioned? Just three months after hitting that high, the price had dropped to $379.75. That same investment would have a value of $7,298.

Dec. 14, 2018: Things didn’t get much better as 2018 continued. By the end of the year, Ethereum’s value had dropped to $83.37. A $1,000 investment then would be worth $33,243 today.

July 3, 2019: The market for Ethereum improved in the following year, but it was slow and steady growth to $301.40—and no investor could have forecast what was to come. Your $1,000 would be worth $9,195 today.

March 12, 2020: The day after the WHO declared a global pandemic, Ethereum was trading at a modest $127.29, less than half its highs of earlier in the year. That $1,000 would today be worth $21,773.

Jan. 1, 2021: Ethereum had already started its impressive and rapid climb at the start of the year and was hovering at $730.04 on New Year’s Day. Your investment at that time would be worth $3,796 now.

March 29, 2021: What a difference a month makes. Ethereum sat at $1,830.61 a month ago. You’d have made $514 profit on your $1,000 investment at that time.

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JP Morgan explains why Ethereum is outperforming Bitcoin

Multinational bank and asset manager JP Morgan has published a note to investors stating that Ethereum is outperforming Bitcoin due to improvements in liquidity and a higher turnover on the public Ethereum blockchain.

The comments were made after Ethereum printed a record high of $2,750 on Tuesday, while Bitcoin struggled to gain momentum at $55,000, which is $10,000 below its respective all-time high.

“Both BTC and ETH experienced a comparable liquidity shock earlier this month which triggered a comparable de-levering event of their respective derivatives markets in subsequent days.” The note began.

“But ETH spot depth has recovered quicker and if anything liquidity conditions on some exchanges is better than prior to that event.

“Higher turnover on the ETH public blockchain means a noticeably higher fraction of those tokens can be considered highly liquid, further blunting the impacts of futures liquidations.

ETHUSD chart by TradingView

“This suggests that ETH valuations may be less dependent on levered demand than BTC, a technical but occasionally important tailwind moving forward.”

At the time of writing Ethereum is trading at $2,700 while Bitcoin is back below $55,000 following an overnight rejection from the $55,800 level of resistance.

eToro market analyst Simon Peters has attributed the recent rise in Ethereum to a wave of demand from institutional investors.

He said: “Underlying this is demand from institutional investors. While they may now have some exposure to Bitcoin, institutions are now diversifying their exposure and Ethereum is the natural next pick, and that leaves the second biggest cryptoasset by market cap well placed to benefit further.”

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Ethereum jumps to record high

After reaching an all time high of $2,500 per coin earlier this month, Ethereum has now managed to hit a new peak following reports that the European Investment Bank (EIB) plans to launch a “digital bond” sale on the Ethereum blockchain network.

The world’s second largest cryptocurrency climbed to $2,756 before falling slightly to $2,745 at the time of writing. While Ether is the cryptocurrency of the Ethereum blockchain, the two terms have become interchangeable among crypto enthusiasts.

Ethereum’s new record high coincided with the release of a new report from Bloomberg in which sources familiar with the matter said that the EIB plans to issue a two-year 100m Euro digital bond. Other big banks will also be involved in the sale as it will be led by Goldman Sachs, Banco Santander and Societe Generale according to Reuters.

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In a statement, VP for EIB, Mourinho Félix explained how leading the digital bond sale will provide the bank with alternative sources of finance, saying:

“Innovation at the EIB goes beyond the projects we are supporting. As a global leader in the green and sustainability bond markets, the EIB is clearly well‑placed to lead the way now in the issuance of digital bonds on blockchain. These digital bonds will play a role in giving the Bank a quicker and more streamlined access to alternative sources of finance to boost finance for projects across the globe.”

Ethereum’s rising price

While reports that EIB will soon issue a digital bond on the Ethereum blockchain, a decline in the supply of Ether has also helped bump up its price recently according to head of revenue at SFOX, Danny Kim who spoke with Reuters about the cryptocurrency’s rising price.

At the same time though, Ethereum is also being used to buy virtual art or land in the form of NFTs or non-fungible tokens.

Only time will tell if Ethereum will be able to dethrone Bitcoin as the world’s largest cryptocurrency but rising coin prices and higher demand are good signs for both the future of Ether and the Ethereum blockchain.

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Via Reuters