Bitcoin has been the forerunner in cryptocurrencies, but the second largest cryptocurrency Ethereum, is gaining pace, although it´s still a long way behind.

This doesn´t mean it can´t catch up though. The interest that the Russian President Putin has shown in it recently might be just what Ethereum needs.

The price of Ethereum has increased from around $13 to $260 from late February until now, which means a 2,000% increase. Bitcoin has climbed only around 300% during the same period, from around $1,000 to $2,900, but that´s another story which we will cover in the coming days.  

So, Mr. Putin met the founder of Ethereum Vitalin Buterin somewhere in the Arctic and apparently they talked about how cryptocurrencies could improve the safety and speed of online transactions.

They see the emergence of cryptocurrencies as another economic potential, similar to the rise of the internet. So, they don’t want to be left behind this time and they´re introducing/using cryptocurrencies (in this case Ethereum) in Russia, with the Russian Central Bank starting a pilot program.

This is good news for this cryptocurrency, so it is likely that the uptrend in Ethereum gains even more pace. This might hurt Bitcoin and other cryptocurrencies though since some of the inflows in these currencies might reverse and go towards Ethereum.

This is some sort of market intervention by Putin knowing that Ethereum is based in Russia, but no one cares about this sort of intervention when he has intervened militarily in many countries.

Note: We will be introducing signals and market analysis for cryptocurrencies soon here at Fxleaders.com. The interest for them has increased dramatically recently and we want to contribute by making a safer trading environment.