When will Ethereum experience a major surge?

08/14/2023 23:40 • Metaverse Matters • 79 views

In the field of cryptocurrency, the concept of Ethereum originated from Bitcoin. Over time, it has become a new type of digital asset. However, Ethereum is the most representative part of blockchain technology and shares the characteristics of decentralization and application scenarios with Bitcoin. Now, Ethereum is increasingly seen as a new payment system or protocol that allows people to use Ether for purchases, storage, and transactions.

Ethereum is an open-source platform and network designed to provide a trustless environment for running applications, enabling financial institutions, companies, and other service providers to create, manage, and execute their own business activities. By integrating various types of functionalities, such as wallets, Ethereum offers a range of use cases based on distributed ledger technology: peer-to-peer transfers, implementation of smart contracts, and parallel processing. This new model allows developers to operate different tokens on different chains and have the ability to issue these assets. However, since Ethereum is not just a cryptocurrency but also has scalability, users do not need to directly participate in it for the convenience of expanding their products and services. Therefore, users need to borrow information or access resources from others through existing services.

When will Ethereum experience a major surge?

On February 18, 2020, Ethereum started to experience a pullback after breaking the $200 mark. It has been hovering around $220 since January 20. Since the beginning of this year, Ethereum has been striving to rise and has seen an increase of about 15%, but it is still a step away from reaching its new high. The bull market at the end of 2018 was six times that of 2017.

Let’s take a look at the historical price trends of Ethereum: Bitcoin and Ripple briefly experienced a rise of one or two hundred points. However, as the price of Ethereum continued to rise in the fourth quarter of 2018, its performance was not satisfactory until a significant surge appeared in early July of this year. Then, in late December of last year, due to the downturn in the cryptocurrency market, Ethereum plummeted to $0.0043 per coin and hit a low of just $0.033 per coin before the time of writing.

Historical price trend of Ethereum

According to data from the historical data analysis company Glassnode, over the past month, over 10 million addresses have held ETH worth at least $1 billion. Most of them are active users, including those with significant deposits on the Ethereum blockchain.

In addition, the recent DeFi frenzy has led to an astonishing $30 million locked in smart contracts on Ethereum. This indicates an increasing demand for Ethereum from investors. (Note: “DeFi” refers to the collective name for digital assets used in the decentralized financial ecosystem).

Chart source: Glassnode

If we calculate based on the current speed of Bitcoin, Ethereum’s market trend in 2021 should be a “bull market”. So why would Ethereum experience a sudden surge?

Because transaction fees on the Ethereum network are very expensive and have not undergone any significant adjustments. Therefore, once the Ethereum price reaches this level, it will experience high volatility. When it approaches this level, the price will drop and continue to decline. As a result, it has not been able to return to its long-term bottom.

Now, let’s talk about the recent developments of Ethereum:

1. Ethereum 2.0 is expected to be released in the third quarter of this year.

2. The beacon chain mainnet will go live in the first half of next year. Ethereum developers plan to deploy the testnet in the second half of 2019.

3. Regarding compliance: While compliance is important for Ethereum, further improvements are still needed in terms of security and stability.

4. The Ethereum Layer-2 scaling solution has been mainly completed, but there are still some risks present.

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When will Ethereum experience a major surge?

When will Ethereum experience a major surge?

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