Ethereum profits and reaches annual high
BTC rises to over 22,000 US dollars, ETH follows suit and reaches over 650 US dollars
The next Bitcoin bull run is in full swing, and ETH, the cryptocurrency of the Ethereum ecosystem, can also benefit from the huge rise to over 22,000 US dollars. As a result of Bitcoin reaching a new all-time high, Ether (ETH) was also able to rise to a new high for the year.
As a result, the price was able to rise to over 650 US dollars at times, fueling the hopes of the Ethereum community that ETH could experience a similar hype as Bitcoin. In addition to the Bitcoin all-time high, the Chicago Mercantile Exchange’s announcement to offer an ETH future from 2021 was also very conducive to the short-term price development.
The Ethereum camp assumes that the growing DeFi trend will be the price driver in 2021 and will lead to four-digit US dollar prices per ETH.
News of the launch of ETH futures on the CME exchange were not, of course, the most significant event for Ethereum this year. The first phase, Phase 0, of ETH 2.0, officially launched in early December.
ETH 2.0 is intended to transform Ethereum from a proof-of-work to a proof-of-stake blockchain. In addition to the change to the consensus mechanism, there will also be other upgrades. The focus is on sharding, whereby a blockchain is practically “decomposed” and can thus process transactions in parallel—the possibilities for scaling increase immensely as a result and could clean up some problems.
In the course of the DeFi hype this summer, the Ethereum blockchain often reached its limits. Transactions took forever, and transaction fees were bid up to the point where people sometimes had to pay double- or even triple-digit U.S. dollar amounts to get their Ethereum transaction processed by the miners in an acceptable time frame.
No one can say with absolute certainty whether another ETH bullrun next year, as was the case in 2017. But the signs are not bad, given the world’s growing interest in cryptocurrencies in general. For example, it was also recently announced that a hedge fund from the United States had invested $600 million in cryptocurrencies, including Ethereum in addition to Bitcoin. It is not unlikely that more big investors will buy Ethereum.
“A tide raises all boats,” goes the old saying. In terms of Bitcoin and other cryptocurrencies with large market capitalizations, this has been true, at least historically. However, the prerequisite for an enormous price increase with ETH is the smooth course of the upcoming phases of ETH 2.0 implementation. If this is guaranteed, nothing stands in the way of a strong price increase.
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