5 reasons the price of Ethereum just jumped to over $230

Ethereum just rose above $230, a increase of 33% in the week and back up to October 2018 levels. Here are five reasons it’s leading the charge of the altcoins.

1. Taking Bitcoin’s lead

There’s no doubt that all cryptocurrency altcoins are correlated with Bitcoin. Bitcoin alone accounts for 57% of the entire market capitalisation, and is the primary on-ramp to crypto. Where Bitcoin leads, the others follow. And Bitcoin is surging since it passed the “Golden Cross” on the 22nd April.

2. Big names are backing Ethereum

JP Morgan’s created Quorum, an enterprise version of Ethereum. Microsoft will offer its customers to build Ethereum-based blockchain solutions on its Azure cloud platform, and Starbucks will use Azure and the Ethereum blockchain to track and benefit its coffee farmers. There are also rumous of Samsung using the Ethereum platform and the possibility of an Ethereum derivative which is being considered by the CFTC (U.S. Commodity Futures Trading Commission).

As well as these large enterprises getting behind Ethereum, Mike Novogratz, a Bitcoin proponent, just gave a big endorsement of Ethereum. During the Ethereal Summit, the founder of Galaxy Digital Group said Ethereum should eclipse Bitcoin’s stature as a store of value asset.

3. Ethereum is being actively developed and improved

Although Bitcoin has some really exciting layer-2 payment technologies being built around it, the core technology is static. Ethereum is constantly improving, forking and developing. Its smart contracts and dApps are still relatively early in their life, and hundreds, if not thousands of companies are actively developing on the platform.

In a recent interview, Ethereum co-founder Joseph Lubin said he believes the Ethereum platform will become around 1,000 times more scalable within the next 18 to 24 months after a set of upgrades associated with Ethereum 2.0 have been activated.

4. Fidelity Investments research suggests institutional money is coming

Fidelity, which hosts a digital assets division, ran a survey to find out how pensions, family offices, hedge funds, endowments and foundations feel about owning cryptocurrencies.

The survey found that 47 percent of institutional investors said digital assets are worth investing in, and the same percentage said they appreciate crypto for being innovative.

Just as important is the fact that 46 percent of respondents like the low correlation between cryptocurrencies and other asset classes. And if you want a hedge, you wouldn’t place all your money in Bitcoin. Ethereum and other top altcoins by market cap are definitely of interest for institutional investors.

5. The Consensus Bull Run

The biggest crypto conference of the year – Consensus New York – is happening right now. It brings a feel-good factor and renewed focus on the innovations in the crypto community as the movers and shakers get together to debate the issues of the day.