Ethereum to Rand is an interesting crypto-to-fiat pair that tracks the value of the world’s 2nd most traded cryptocurrency, Ethereum, in relation to South Africa’s official currency, the Rand, which serves as the counter currency. Its value expresses how many Rands can be obtained from selling one ETH or how many Rands it would take to buy one ETH.
There is a lot of room for speculation when it comes to cryptocurrencies, as the value of these modern investment vehicles is highly volatile due to the fundamentals that drive their price.
With that in mind, ETH to ZAR can be an adequate pair for traders who understand the dynamics that drive the value of cryptocurrencies and African fiat currencies.
The fact that there is no natural correlation between cryptocurrencies and other financial assets makes them suitable vehicles for portfolio diversification and ETH/ZAR can be used with that exact purpose in mind.
Traders can incorporate ETH to ZAR to their portfolios by using Contracts for Difference (CFDs), and they can take either short or long positions to profit from any directional price movement.
Ethereum’s popularity has been boosted by the possibility that its underlying blockchain technology may be adopted by corporations seeking to develop blockchain-based applications.
The launch of the Enterprise Ethereum Alliance (EEA) was a step forward in this direction, as the organisation reported that more than 180 companies are already active members of the initiative.
If further applications are developed by using Ethereum’s blockchain, the demand for ETH will be increased as the network requires that transaction fees involved in using Ethereum’s blockchain are paid in ETH. As a result, the price of this token could go up significantly.
Meanwhile, the South African economy is the 2nd largest in the continent, after a period of consistent economic growth that started back in 1996. The country is now the 30th largest economy in the world by GDP, and it is also a major industrial centre for the entire region.
Since 1961, the Rand has been South Africa’s official currency and it ranks among the 20 most traded currencies in the world due to the importance of the country’s economy in the global trade arena.
Nevertheless, the recent coronavirus health emergency has triggered a flight-to-safety reaction that is currently taking a toll on weaker currencies. As a result, the value of the Rand has been losing significant territory against the US dollar.
During the last 12 months, ZAR has lost more than 30 per cent of its value against the US dollar. There is still room for traders to profit from subsequent devaluations of this fiat currency by taking a long position on ETH/ZAR.
Capital.com’s comprehensive chart shows ETH/ZAR price rate in real-time, which indicates how much Ethereum is worth as measured against the South African Rand.
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