Like Bitcoin, Ethereum has done far better than almost any other financial asset over the past weeks. Since the March 13, 2020 price level of $106, Ethereum now costs $200, a gain of over 88%.
According to data from Coinmarketcap, Ethereum, the second-most valuable cryptocurrency by market capitalization, had a value of $22.4 billion and a daily trading volume that stood at about $14.4 billion, at the time of drafting this report.
Meanwhile, the much-awaited Ethereum upgrade, known as Ehereum 2.0, could potentially boost its present bullish trend.
Ethereum 2.0 stands for a fundamental shift in its original designed structure, from the proof-of-work model to an upgrade known as a proof-of-stake model.
Lately, Ethereum Foundation researcher, Justin Drake, wrote on Twitter about Ethereum being long overdue for an upgrade. He said, “Ethereum 2.0 could have been launched a year or two sooner had the team decided to make things easier for themselves, e.g. by going through fewer design iterations.”
We made Eth2 hard for ourselves:
* many design iterations
* many community clients vs one EF-led client
* libp2p vs devp2p; BLS12-381 vs BN254
We could have launched a year or two earlier the easy way. It was painful but it was right. Our investments will pay off for decades 🙂
— Justin Ðrake (@drakefjustin) May 15, 2020
When asked about the improvement on Ethereum he continued by tweeting:
Three big compounding improvements:
* (robustness) unifying PoS and sharding
* (scalability) committees and signature aggregation
* (usability) fewer shards with faster crosslinks
None of these were obvious at the time. Every time we simplified the design.
— Justin Ðrake (@drakefjustin) May 15, 2020
Ethereum is a cryptocurrency designed for decentralized applications and deployment of smart contracts, which are created and operated without any fraud, interruption, control, or interference from a third party.
Ethereum is a decentralized system, fully independent, and is not under anybody’s authority. It has no pivotal point, and its platform is connected to thousands of its users through their computing system around the world, which means it’s almost impossible for Ethereum to go offline.
DeFi crypto market value gains over 1000% from June
Defi based crypto market value had risen from $1 billion in June to $10.71 Billion
DeFi cryptos are now a force to reckon with, especially since the era of the worst pandemic known to man came to play.
It’s important to note that DeFi-related assets are gaining traction, as data feeds from Defipulse revealed that Defi based crypto market value had risen from $1 billion in June to $10.71 billion, at the time this report was written, showing an astronomical gain of 1071%.
Why investors are flocking to DeFI cryptos
Several DeFi crypto assets have had their share of the spotlight in recent times, with cryptos such as Chainlink, Compound, YAM, UniSwap, Cream finance, and Melon gaining investors’ capital inflows.
- Using “Defi” technology, one can build smart contracts with codes that facilitate the actions of intermediaries, including managing and accepting deposits, handling collateralized loans, and liquidating collateral assets as per the terms of the contracts, should their values fluctuate.
- Although DeFi assets, about few days back, had experienced some price corrections due to the rebound of the dollar and overbought indicators, the market seems to show a bullish bias relatively in the midterm, as Defi based investors increase their asset purchases momentarily.
- DeFi crypto owners in some cases can typically receive better interest rates than they would from traditional banks on the basis that lower operating costs is enabled by operating on an automated decentralized network
As a credit to blockchain technology, the contract codes cannot be terminated or manipulated by any entity, and are executed with specific conditions.
What DeFi means: Defi means “decentralized finance.” By definition, it’s a crypto ecosystem made up of financial apps designed on leading blockchain platforms.
- Defi, in short, is the use of blockchain technologies (including smart contracts, decentralized asset custody, etc.) to replace all “intermediaries” with program codes, therefore maximizing the efficiency of financial services and minimizing costs.
- These digital assets are designed on Ethereum codes, and usually exhibit characteristics that include having protocols and financial smart contracts.
Unknown entity transfers $166 million worth of Bitcoins
BTC whale moved 15,987 BTC in block 649,777 estimated to be worth about $ 166 million.
The number of transactions done by large entities in the world’s most important crypto market is on the rise.
Data obtained from Bitcoin Block Bot, a crypto analytic tracker, revealed that a BTC whale moved 15,987 BTC in block 649,777, estimated to be worth about $166 million, recently.
Whale alert! 🐋 Someone moved 15,987 BTC ($166M) in block 649,777 https://t.co/VAta1uVOcH
— Bitcoin Block Bot (@BtcBlockBot) September 24, 2020
BTC whales have been moving large stacks of BTCs lately, triggered by the third BTC halving that occurred some months ago.
Much of the recent increase can be attributed to wealthy entities withdrawing their BTCs from crypto exchanges. Apparently, this is not new wealth; rather, it represents a change in the way Bitcoin whales are choosing to hold their coins.
From a macro level, the increase in the number of these large entities can be considered bullish.
At the time this report was drafted, Bitcoin was still trading around the $10,500 support levels, as investors have kept buying BTC at its support levels.
Explore the Nairametrics Research Website for Economic and Financial Data
Quick fact: At the BTC market, investors or traders who own large amounts of bitcoins are typically known as Bitcoin whales. This means that a BTC whale would be an individual or business entity (with a single Bitcoin address) owning around 1000 Bitcoins or more.
As BTC whales accumulate BTCs, Bitcoin’s circulating supply reduces, and this can weaken any bearish trend bitcoin finds itself in.
Meaning that over time, it’s possible that as BTC approaches its fixed supply of 21 million, the price of BTC will go up, with BTC’s present demand factored in.
Ethereum’s investors gain 9% in 1 day
Ether traded at $348.85 with a daily trading volume of $12,728,832,627.
The second most valuable crypto is on a strong bullish run, just a few days after dropping momentarily, as the U.S dollar hit a rebound and COVID-19 cases rise.
What we know: At the time this report was drafted, Ether traded at $348.85 with a daily trading volume of $12,728,832,627. ETH price is up 9.1% in the last 24 hours. It has a circulating supply of 110 million coins and a max supply of ∞ coins.
Taking a look at its price action, Ether is sitting in an interesting price range, where the most polarization has historically unfolded (between the $200 and $300 levels) during its five-year history. A close above $350 in the near future would likely trigger more upsides.
Quick fact: Ethereum is a global, open-source platform for decentralized applications. In other words, the vision is to create a world computer from which anyone can build applications in a decentralized manner, while all states and data are distributed and publicly accessible.
On Ethereum, all transactions and smart contract executions require a small fee to be paid, which is called Gas. In technical terms, Gas refers to the unit of measure on the amount of computational effort required to execute an operation or a smart contract.
The Ethereum network is presently close to reaching its technical limits, as DeFi and Tether are essentially responsible for as many transactions as the network can handle at the moment.