2020 Marked by Ethereum Doubling

The year 2020 was marked by a two-fold increase in Ethereum. When we compare it with the average of the top 30 coins listed on our stock exchange since the beginning of the year and according to coinmarketcap, we see Ethereum as having left them all behind. So what’s behind the rise? Let’s examine the rise of Ethereum step by step.

On May 3, the news that JPMorgan, IBM, Microsoft, and Amazon had bought Ethereum quickly spread in the cryptocurrency market. Within 20 days of this news, Ethereum gained 32 percent. The interest of institutions in ethereum has also increased the interest in other crypto coins. The interest of institutions in crypto coins is directly reflected in the prices in the individual investor-dominated market. The reason for this is that crypto coins have a long way to go in terms of volume. As its integration into daily life increases, the addition of real supply and demand to the supply and demand price formed in the stock markets will reduce the volatility and more people will increase their investments. The monthly turnover of the Amazon company alone is around $ 30 billion. There is no doubt that the use of crypto money in shopping will have a supply-side effect.

The year 2020 was marked by a two-fold increase in Ethereum

Since December,
DeFi
projects have slowly started to come to the agenda. At the time, $1 billion in assets were locked in the ethereum chain. As we approached the end of August, the value locked in increased by more than 7 times, attracting serious interest from investors. DeFi tokens have made very serious upward movements. Despite this, Ethereum was not able to make this attack until the end of June alongside tokens using its own technology. Of course, this increase in other DeFi sub-tokens attracted investors, and the hero of this technology was forgotten. Then, as it should be, as of July 20, Ethereum went on a very serious attack. It went from $236 to $439, up 86 percent. I think that the rapid rise of the second largest coin in the market in terms of volume is enough to be the star of 2020, even if it is not the most increasing coin. 

The year 2020 was marked by a two-fold increase in Ethereum

 

What will happen to Ethereum next? After the rise, it retreated to an amount and is now priced at $ 385. After such a rapid rise, this retreat is very normal. However, we have seen two obstacles that Ethereum has to overcome. With the increase of DeFi projects and investment in these projects, the Ethereum network has slowed down a lot. Although the miners who confirmed the transactions with
Proof Of Work
consumed a very serious amount of energy, it took serious time to confirm the transactions. In addition, the increase in the price of Gas led DeFi to become a Premium product. The interest of investors with low investment amounts began to decrease with the increase in transfer costs. 

The increase in the cost of scaling and transferring Ethereum shows how important 2.0 is to Eteherum. This is not an easy process, the constant postponement of the process shows this. However, we can say that this update will determine the future of Ethereum. Considering that eth 2.0 is not yet priced in yet, it is necessary to add that this uncertainty also creates opportunities for ethereum investment.

 

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