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Home > Trading > Ethereum’s Historical and Modern Presence in the Crypto Market

Ethereum’s Historical and Modern Presence in the Crypto Market

Published by Jessica Weisman-Pitts

Posted on April 16, 2025

4 min read

Last updated: April 16, 2025

Ethereum’s Historical and Modern Presence in the Crypto Market - Trading news and analysis from Global Banking & Finance Review

Cryptocurrency has long been influenced by the combination of market dynamics, network upgrades, institutional adoption, and the broader macroeconomic conditions that surround it. Ethereum is no exception.

Conceptualized in 2013 by Vitalik Buterin, Ethereum was officially launched in July 2015. Since then, it has seen a steady fluctuation in its price points, making Ethereum price and knowledge of it highly sought after in the crypto market.

Historical Trends in Ethereum Price

Ethereum has seen its share of rises and falls since its arrival in the crypto space in 2015. With its first major bullish trends triggered by the ICO (Initial Coin Offering) boom in 2017, most tokens at this point were built on Ethereum.

With the increase in the mainstream awareness of cryptocurrencies at this point drawing interest from developers who want to build on Ethereum, and the rising price of Bitcoin pulling the crypto market up, Ethereum witnessed limited regulatory scrutiny during the 2017 to 2018 period.

What could be described as the “Crypto Winter” would occur between 2018 to 2019, at which point the ICO bubble would burst, and regulatory crackdowns would ensue worldwide. Market exhaustion would lead to price increases, and competition from alternative blockchains would drive further bearish trends.

However, the bullish run would reemerge in 2020 and 2021, at which point DeFi (Decentralized Finance) would cause the scene to draw additional institutional interest and investments in crypto. The popularity of NFTs (Non-Fungible Tokens) would attract additional people to Ethereum, especially with Ethereum 2.0 just around the corner, and major institutions like PayPal integrating crypto into their platforms.

Ethereum’s modern recovery has occurred since 2023, as the execution of The Merge and transition to Proof of Stake would drive confidence in Ethereum.

Influences that Affect Ethereum Price

Ethereum’s multifaceted technology, and the ecosystem it lies within, have made it one of the most popular cryptocurrencies in existence.

Several factors affect the price points of Ethereum. These include:

Market demand and supply, which include Ethereum’s staking supplies, staking trends, and whale activity.
Network upgrades and developments revolve around the impact of Ethereum 2.0, The Merge, and future upgrades.
Institutional and retail adoption, which cycle around the adoption of DeFi, NFTs, and enterprise use.
Macroeconomic and regulatory factors that are affected by global financial trends, interest rates, and cryptocurrency regulations.

Ethereum’s Role in the Crypto and Financial Ecosystem

Ethereum’s role in the crypto and financial ecosystems primarily lies in its foundation for DeFi infrastructure. Given its roots in decentralized finance protocols, Ethereum provides a base in infrastructure for lending platforms, decentralized exchanges, as well as for yield aggregators. The ecosystem makes it more approachable to existing institutions, such as banks that are experimenting with Ethereum-based systems, or financial institutions offering Ethereum custody and trading.

Emerging Trends and Future Predictions for Ethereum

Ethereum’s technology is continuously evolving. Its newer, more modular design is defined by the different layers that handle specialized functions, during which Ethereum acts as a settlement and security layer, while other layers offer rollups for execution and scaling. With this approach, newfound specialization optimizations can occur per layer, thereby making Ethereum more efficient.

Even with this newfound technology, Ethereum’s future continues to be shaped by the technical evolutions it will likely develop. With fuller implementations of sharding capable of potentially increasing Ethereum’s throughput capabilities and the integration of Zero-Knowledge technology enhancing efficiency and privacy, Ethereum’s ecosystem will only continue to grow, especially as mainstream applications will simplify the complexity of the blockchain for everyday people.

Ethereum will likely continue to innovate while maturing into a more stable structure within the overall digital economy. With traditional financial systems taking cues from Ethereum’s capabilities, the technology may soon provide a more intuitive user experience.