| Year | Price of Ethereum in Indian Rupees |
|---|---|
| Year2016 | Price of Ethereum in Indian Rupees615 |
| Year2017 | Price of Ethereum in Indian Rupees23,824 |
| Year2018 | Price of Ethereum in Indian Rupees38,000 |
| Year2019 | Price of Ethereum in Indian Rupees8,870 |
| Year2020 | Price of Ethereum in Indian Rupees28,500 |
| Year2021 | Price of Ethereum in Indian Rupees3,38,501 |
Ethereum Price History India | 2015-2021
The table is made using the average price. (Average price= Initial rate + final rate of that year/ 2)
2016: 615 INR
2017: 23,824 INR
2018: 38,000 INR
2019: 8,870 INR
2020: 28,500 INR
Current price of Ethereum in 2021: 3,25,798 INR (30th October)
Theoretical add-on
Ethereum was launched in 2015 and within a year, it crossed more than a thousand Indian Rupees which was rare in cases of other cryptocurrencies. Currently, ETH is the second most powerful cryptocurrency after Ethereum on the ground of market cap value. The current market cap of Ethereum is 456.7 billion USD or 342.18 kharab (one kharab= 100 billion) Indian Rupees.
Though the price of Ethereum is quite volatile. The detailed price within a year could show the volatility, despite the price is fluctuating daily. 2016 was the lowest point of Ethereum, we are not taking the value of ETH in 2015 because it was the launching year of Ethereum so let's assume it's zero at that time.
When do Ethereum prices rise or fall?
1. Media Hype
Media is a powerful tool that can change the way people think about the world. People believe in what others say.
When Media hypes a particular topic, the topic is then struck in the mind of a person.
The same person tells the story about the topic to another person and the cycle continues till another Media started saying the downside of the same topic.
For instance, in Jan 2018, the price of Ethereum was close to 90k Rs and the headlines were made on Ethereum on daily basis, in turn, it pulled out a lot of attention from the public. The price then declined to 25k Indian Rupees within April.
2. Growing lack of confidence in real currencies.
A lot of people are losing their trust in fiat currencies and the reason for this is the regulation of the central authorities.
They fear if the authorities started printing out many notes, which can result in hyperinflation, where the currency loses its value and becomes weak in front of other fiat currencies.
If we look at history, Fiat currencies have failed over and over again.
Even assets like gold have survived. And if people lose all the trust in the nation's currency, the currency will survive no more.
On the other hand, Ethereum is not controlled by central or external authorities, making it pretty safe for people to trust Ethereum.
It has a limited supply as well Ethereum halves every four years, which increases its value. As the supply decreases, demand increases, therefore, the value increases as it experiences a bull run.
3. HODLing (Holding)
Some business tycoons hold a large proportion of Ethereum which significantly contributes to the price or value due to the scarcity.
When a large proportion of Ethereum is HODLed, the supply decreases and demand increases, due to which the price or value increases.
The HODLer does get an equal return in a long-term aim. That's the reason why we see some popular tycoons buying a large proportion of shares.
4. Increasing endorsement or adoption of Ethereum
Some of the major retailers have adopted Ethereum as a means for the transaction.
Some examples of companies that use Ethereum as a medium to sell their products are Microsoft, Home Depot, and AT & T. Tesla is planning to implement the use of Ethereum.
As more and more retailers use Ethereum, the demand for Ethereum increases.
But still, many companies are lacking this as they fear the volatility of Ethereum and it is too new.
5. Scarcity in supply
As scarcity increases, demand increases at an equal pace. Due to an increase in demand, the price also rises. The limited supply of Ethereum is 21 million. As the amount is halved after every four years, the new Ethereums arriving in the market are nullified.
To understand the context in a simpler way, in 2009, the reward for Ethereum mining was 50 ETH, and after the first halving in 2012, it was reduced to 25 ETH, right now the reward for Ethereum mining is 6.25 ETH since 2020.
So what's happening here? The supply is reducing by half and the value is increasing. It also reduced inflation by half.
6. High volatility
High volatility means high fluctuation in the price. The price of Ethereum changes a lot. This gives a lot of opportunities to traders. You can not make any money if the volatility is too low to null. There must be changes in the price to make a profit or loss out of it.
Ethereum is a very volatile cryptocurrency that offers a lot of potential to traders.
Experienced traders would most likely put their money in Ethereum and this lowers the supply as well as increases the demand which results in price hiking. Volatility is inversely proportional to liquidity.
Thank you.