ETH performed particularly well in pricing during the month of July 2020. However it did not follow the increase that the BTC has made since 1 month. Why? And well mainly because price prices are already high and the market is waiting for the release of Ethereum 2.0. This release will be effective in December 2020. For your information, this will not be a technology that will suddenly replace another one gradually. This transition is called the Beacon Chain. A little reminder of the price history.
2020 is a very good year for ETH. As for the BTC by the way but ETH did not fly away like the BTC. This is a sign that the market is healthy. Not everyone is rushing into anything. When markets evolve independently based on purely technical and fundamental factors, this is a very good sign. To give you a comparative idea of price developments, here are the BTC courses.
There is a fundamental difference between BTC and ETH in the evolution of their price. Bitcoin is primarily driven by the acceptance of this currency as a universal means of payment. The ETH, for its part, sees its prices influenced by the technical and financial improvements it brings and that its blockchain allows notably through the DEFI. What played heavily against ETH was its poor ability to allow a very high volume of instantaneous transactions at low costs. On the DEFI, you have to be able to make immediate transactions, which sometimes generated high costs. Fortunately, ETH 2.0 will solve this problem but be careful as I said before, in a progressive way and not in a brutal way. We will have to monitor the new ETH network and see if there is no problem in its implementation. Here is the chart of the evolution of transaction fees on the Ethereum blockchain.
More generally, the number of ETH addresses continues to grow steadily. There is no runaway as could be seen with Bitcoin for the month of October and November 2020. As for its capitalization, ETH is again going over the $50 billion.
The performances are therefore very good for ETH but not as exceptional as that of the BTC at the end of the year. Beware, the month of December will certainly be a decisive month for the ETH with the release of ETH 2.0. We will have to be close and if ever the new network is not up to snuff, this could create a long stagnation of prices or even a decrease.
So pay close attention and follow the news on the latest developments in ETH
Good luck!
