Ethereum (ETH) continued to trade in positive territory on Wednesday after developers allocated $30 million toward a slew of upgrades designed to improve the second-largest blockchain network. The project certainly has a lot to prove after a devastating bear market lowered ETH’s reservation demand and forced a sharp correction in price that has only recently showed recovery potential.
The ETH price briefly returned above $260.00 on Wednesday, according to CoinMarketCap. It peaked at $261.54 before backtracking later in the session. At the time of writing, ether was holding steady at $255.60, having gained 1.7% on the day.
In terms of overall market activity, Ethereum’s reported trade volumes were just under $10 billion. Its largest markets were DOBI Exchange, Fatbtc and OOOBTC.
As far as overall value goes, Ethereum has a total market capitalization of $27.1 billion.
Ether first cracked $260 last week, as alternative cryptocurrencies followed bitcoin’s parabolic surge to greater highs. Ethereum’s rally was a long time coming, given the extent of its underperformance this year. In terms of resistance, the $275 area offers up the first major push back. This region represented the upper level of last week’s bullish breakout.
Over the past four weeks, ether’s value has increased by nearly 50%. It has quickly emerged as one of the top-performing cryptocurrencies, which has important arbitrage implications for traders and long-term investors. Read more: Here’s Why You Should Consider Flipping Some Bitcoin for Ethereum.
Development Initiatives Underway
In an official blog post on Tuesday, the Ethereum Foundation detailed plans to spend $30 million on three development initiatives. The main priority areas are, “(i) Building the Ethereum of tomorrow, (ii) Supporting the Ethereum of today, and (iii) Developer Growth & Awareness.”
“Over the next year, the Ethereum Foundation plans to spend $30 million USD on key projects across the ecosystem. This budget is insulated against downward ETH price movement.” – Ethereum Blog
Funds will be dispersed over the next 12 months, with $19 million going toward building the Ethereum of tomorrow. This includes developing ETH 2.0, the introduction of state channels and Plasma and Phase 3 research and development.
Priority area (ii) will receive $8 million over the next year and will ensue that the current version of Ethereum “continues to be the world’s dominant smart-contract platform.”
Another $3 million has been earmarked for the developer growth and awareness initiative. This includes education and onboarding, as well as new marketing and awareness building efforts.
As far as cryptocurrencies go, Ethereum has one of the world’s largest developer communities and one of the most impressive lists of corporate partners. The Enterprise Ethereum Alliance (EEA) has nearly 400 partners, including Microsoft, Samsung and Advanced Micro Devices. Despite growing competition for smart contracts and decentralized applications, the case for Ethereum remains strong.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.