Ethereum is the second most valuable cryptocurrency by market capitalization, second to only Bitcoin. Ethereum’s price is determined by the market supply and demand for the token, similarly to how the price of stocks are determined.
Unlike stocks, Ethereum doesn’t have revenues, profits or a formal balance sheet, so it’s hard to determine the intrinsic value of Eth tokens. Although hard to value, Ethereum still holds intrinsic value. Eth tokens are necessary for transacting on Ethereum’s blockchain, which supports a variety of financial functions.
This past year Ethereum’s price has appreciated much faster than Bitcoin’s, despite Bitcoin being over double its previous all-time high of $19,800. Since March of last year, the price of Ethereum has risen over 1,200%. But what is Ethereum, and what actually determines Ethereum’s price?