ETH has surged 900% this year, thanks to these 5 factors

Bitcoin isn’t the only cryptocurrency hitting new all-time highs.

The cryptocurrency that has grabbed the mainstream spotlight from Bitcoin is Ethereum’s blockchain token, Ether (ETH). Compared to Bitcoin’s nearly 50% surge this year, ETH’s 900% increase is worth studying.

From $8 on January 1st of this year to an all-time high of $82 this week, ETH has come a long way since it began trading in 2015.

The following 5 points may help novices understand the ETH trading market.

1) ETH did not become famous overnight

According to CoinMarketCap data, since the beginning of 2016, ETH has been the world's second largest cryptocurrency by market value, second only to Bitcoin, and is better than other long-held alternative asset protocols, such as Litecoin and Ripple.

This dramatic surge came at a time when the entire cryptocurrency space was attracting a massive influx of capital—$7 billion was raised in the first quarter of 2017.

During this period, the price of ETH has increased by nearly 500%.

The cryptocurrency’s price rise is even more impressive when viewed from a broader time perspective, with ETH appreciating by more than 2,800 percent since it began trading in 2015.

2. ETH trading volume fluctuates greatly

Looking at the entire trading history cycle, ETH trading volume fluctuates greatly.

ETH trading activity can be very mild at times, with 24-hour trading volume sometimes falling below $100,000. At other times, ETH trading activity can be very intense, with ETH's 24-hour trading volume reaching nearly $600 million in March.

However, overall, the ETH market is showing a gradual upward trend, with trading volumes rebounding significantly in March and April.

3.ETH search index is close to a record high

What is the relationship between ETH network search index and price?

As Coindesk contributor Willy Woo points out, most traders and buyers will first Google the price of ETH.

According to Google Trends, ETH search index has risen significantly over the past few years, despite the rise in ETH prices accompanied by some notable pullbacks.

Searches for the cryptocurrency peaked in mid-March, with the term “ethereum” being most searched between March 12 and 18.

Additional data from Google Trends shows that search index for this term fluctuates quite a bit when analyzed by geographic region.

Over the past five years, Switzerland has been the most popular region for searching “Ethereum,” followed by Venezuela.

4. Bitcoin exchanges also offer ETH trading

In the past few years, several large exchanges have begun offering ETH trading services. Poloniex, the exchange with the largest ETH/BTC trading volume, began offering this trading pair in August 2015.

Kraken, Bitfinex, Coinbase, and Gemini followed suit, with some also offering ETH/USD trading pairs. Others offer OTC trading of ETH to their customers.

For example, Genesis Trading Exchange began offering ETH OTC trading in early 2016, while Octagon Strategy began offering this service to its clients in March 2017.

5. Ethereum has its own token

Due to the design rules of the Ethereum platform, developers are able to issue their own assets on the Ethereum blockchain network.

Token sales for Ethereum-based projects have surged over the past year and are gaining traction, so the attention paid to these Ethereum-based projects is likely to continue to drive ETH transactions and demand.