Little by little, Ethereum (ETH) is advancing towards the top, as this week has achieved a 31,65% growth. With this, Ethereum breaks down the barrier of US$ 300, and here we explain the possible reasons. In addition, it has reached a new peak in 2020, recovering all its losses during the market collapse in march.
Why Ethereum has increased in price particularly this week?
There are several points that can be mentioned. For example, each day is closer to the upgrade of Ethereum 2.0. In addition, in parallel, the increase of the sector DeFi, or Finance Decentralized, has been sustained.
In the weeks since it comes commenting on the possibility that what happens with the DeFi impulse to Ethereum. After all, most of the platforms DeFi or contracts smart are based on Ethereum.
Graphic weekly price of Ethereum (ETH), which shows how this criptomoneda breaks down the barrier of US$ 300. Source: CoinDesk
Also, the interest of the investors in the options of Ethereum is considerable. This interest has come to a point where these people acquired options of US$ 720 for the next five months. This demonstrates the optimism that you have, even if it seems pretty unlikely.
Let’s talk about ETH 2.0
The test network end of Ethereum 2.0 is scheduled for August 4. That is to say, we are less than two weeks to meet the start of this new and defining phase.
We know how ambitious the project is that, a Blockchain as large as this, you will make one transfer of all users, and your assets, to a decentralized network completely new. But, even more ambitious is that you will be keeping all the operations in the former network, that will be active and functioning.
Naturally, this does nothing to boost the optimism of buyers, investors and those interested in the second main criptomoneda.
The case of the DeFi driving the price of ETH
The last increase in the activity of Ethereum DeFi pushed the transactions, Ethereum, and the overcoming of the barrier of US$ 300. If we look at the data provided by Glassnode about the transactions with Ethereum we’ll see that it has done no more that to grow in 2020.
But, particularly since the beginning of the month of July looks like a rocket taking off little by little.
Amount of transactions with ETH (moving Average 30 days). Source: Glassnode
Thus, the network Ethereum ran more than a million daily transactions with ETH. Currently, the applications Defined in the chain of blocks Ethereum have over US$ 3 billion in funds on the platform. The three main platforms Defined in the network Ethereum are Maker, Aave and Jacket.
All of the above together gives us a clear picture of what has been driving this increase of more than 30% in a matter of days. This last we can prove the point by analyzing the graph the weekly price of Bitcoin. Is in conjunction with the transaction confirm what we have established.
Follow so, do you think that the future of ETH will shine with a higher price compared to the US$ 700? What are your expectations with regard to Ethereum 2.0?
Whatever your answer, we can not deny that Ethereum is pressing the accelerator with force, although we do not know for how long.