History of Ethereum

The Ethereum network originated in 2015, when the so-called Genesis block was mined. A Genesis block is the very first block of a new blockchain. On the Ethereum network, ether is the corresponding currency. The terms Ethereum and ether are often confused. When you read about ether in this article, we’re referring to the currency.

So what’s the difference between the protocols of Ethereum and Bitcoin? Bitcoin has been designed to function as a peer-to-peer payment system in which safety and decentralisation are key. Bitcoin is an alternative to the existing financial system of central banks, who can print money almost limitlessly.

Ethereum wasn’t really designed to be a payment system. It was created as a platform on which decentralised applications can be launched. This way, the network could potentially function as a 3.0 version of the internet as we are currently using it.

Another function of the Ethereum network, is running so-called smart contracts. A smart contract is a programmed contract, which is automatically executed when the terms and conditions are met. This offers endless possibilities, and a lot is expected from Ethereum in the years to come.

Since ether is the currency used on the Ethereum network, the demand for ethers will rise as the network increases in popularity. A rising demand will generally lead to a higher price.

An overview of the ether price

In 2017, the price of ether increased enormously. On the 1st of January, 2017, ether was worth approximately 8 dollars, by December 31st, the value had increased to 723 dollars!

Some milestones of ether’s price:

• 22 July 2014: ether is introduced with a crowd sale. One of the inventors is prodigy Vitalik Buterin. The introductory price is 0.26 euros.
• 12 May 2016: ether's total market value passes one billion dollars, or 837 million euros.
• 13 June 2016: 46 million euros worth of ether is stolen from the DAO, one of the first major projects on the Ethereum network. The scare is well underway and ether loses almost third of its value.
• 5 May 2017: almost two years after launch, ether passes the $100 (84 euro) mark. A rise of over 32,000%
• 13 January 2018: ether hits 2018 high of 1,500 euros.
• 7 December 2018: the bear market hit ether hard. In December, the counter was as low as 70.80 euros.
• 26 June 2019: the following year ether shoots to a high of 312 euros.
• 13 March 2020: the corona crisis hits ether hard, the price falls to 80 euros.
• Late March 2021: in hindsight, this was the best date for the later entrant. Ether shoots through 1,500 euros and continues to rise.
• Add more than double for a new ATH! On 12 May 2021, Ethereum reached another nice peak of 3,580 euros. 
• 11 December 2021: ether reaches a peak of 4,127 euros
• Then ether drops to a low of 1,022 euros in July 2022
• From then on, it very slowly started its way up again, reaching a price of 2,184 euros on 8 December 2023.

What to expect from the ether price

Unfortunately we can’t predict the future. The ether price is volatile, just like that of other cryptocurrencies. Daily price movements of multiple percentages are not uncommon.

Media reports can be of great influence on the price. Positive news about the use of the Ethereum network is generally well-received in the crypto community. This increases trust in the coin, which in turn positively influences its price.

A good example is the formation of the Ethereum Alliance in March 2017. Members of the Alliance are prominent companies like Microsoft, Mastercard, ING, and Shell. By being part of the Alliance, they expressed their confidence in Ethereum. In turn, the price of ether went through the roof that month- it’s value almost tripled! Of course, it can’t be said for sure that the formation of the Ethereum Alliance was solely responsible for this increase, but it’s effect was evident.

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