Ethereum Rises Slowly in the Background of Bitcoin and DeFi Boom

By World Crypto | World Crypto | 22 Oct 2020


Perhaps Ethereum remains in the shadow of the hype that unfolded around bitcoin, but analysts point to significant upside potential for ETH.

In recent days, the crypto market has been bullish across almost the entire spectrum. Bitcoin (BTC) has become the main driver of the current rally, responding enthusiastically to news that payment giant PayPal has decided to add support for Bitcoin to its infrastructure.

Against this background, Bitcoin first broke the round level of $ 12,000, and then updated the highs of 2020 over the $ 13,000.Meanwhile, the scale of the intra-week growth of the Ethereum rate was noticeably weaker.The currency opened this week at $ 380 and has struggled with the $ 400 mark ever since.

Yesterday's testing failed and it was only in recent hours that ETH broke above that mark again.

However, since the beginning of this year, ETH has shown steady growth, which is expected to continue into the next year thanks to the support of technical and fundamental factors. In addition, the Ethereum rate is still about 70% below its all-time high, while Bitcoin has only about 35% left to get to it.

Ethereum - the whole world

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In 2020, with its unexpectedly unfolding boom in the decentralized finance (DeFi) segment, it confirmed that Ethereum is indeed a completely independent financial ecosystem.

This fundamentally sets it apart from many cryptocurrencies, which are simply a store of value or hedging against fiat assets.

In this regard, Ethereum founder Vitalik Buterin stated:

“In simple terms, everyone should understand: in 2020, continuing to consider ethereum an“ altcoin ”is the same retrograde approach as calling a Lamborghini a“ horseless cart ”.

Currently, according to DeFi Pulse data, a record 9 million ETH is blocked in DeFi protocols, which is 8% of the total and reflects a 200 +% increase since the beginning of the year.

It's worth noting that institutional investors are also showing interest in ETH. So, we recently talked about how the Grayscale Ethereum Trust officially became the first Ethereum trust to be registered with the US Securities and Exchange Commission (SEC).

ETH 2.0 as a welcome push?

Against this background, some members of the crypto community predict active growth for the Ethereum rate even before the end of 2020.

Perhaps the blockchain needs a new catalyst to enhance the DeFi effect. It could be an update to the Ethereum network protocol and the long-awaited launch of Ethereum 2.0. Perhaps this will happen in a matter of weeks, since even the developers of the phase 0 Beacon Chain themselves began to get impatient about this matter.

While all staking opportunities may not materialize right away, many investors will remain loyal to ETH and agree to wait a bit. And then in the financial system, truly tectonic shifts can begin.

 

 

 

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