The leading momentum of Ethereum has formed, and the industry leader in the second half of 2020
In the past few days, the digital currency market has continued to maintain a positive upward trend. The recent trend has an obvious feature, that is, the rise of Ethereum has begun to significantly lead that of Bitcoin.
After Bitcoin reached $11,000, it began to fluctuate slightly up and down, but Ethereum seemed to be able to stand firmly at every step.
Although I have never thought that this round of market will be so good,But if the current trend can continue, Ethereum should very likely continue to lead the gains, for two fundamental reasons:
One is that DeFi (decentralized finance) applications are constantly fermenting, new projects are emerging one after another, and more and more friends outside the circle are beginning to pay attention to DeFi (decentralized finance).
The second is that the next Ethereum 2.0 beacon chain mainnet launch is about to start, which is likely to set off a bigger wave.
Let me analyze these two reasons separately with you in depth:
First, let's look at the impact of the development of the DeFi (decentralized finance) ecosystem on Ethereum.
The ecology of DeFi (decentralized finance) has grown stronger and stronger, and only from the category of ecology, it includes: decentralized exchanges, lending, assets, etc. In each of these ecosystems, new projects emerge in an endless stream. Some of these projects are new shoots from old trees, and some are completely rising stars.
But no matter which one it is, it is obviously highly concerned by sensitive investors in the circle. This high degree of attention has caused almost all projects to be popular as soon as they go online. The only difference between projects is the level of increase. Although many of these projects also entered a downward channel later, people's attention will immediately shift to new projects and will not be affected by the decline of old projects. Therefore, as long as new projects continue to be launched, old projects will soon be forgotten even if they perform poorly, which will keep the entire ecology hot.
Judging from the current momentum, the speed and frequency of new project launches are still booming, and the popularity will not decrease at all. After the recent AMPL project became popular, the rapid emergence of two imitations in the circle is a typical example. The emergence of imitation disks is a typical project party with a FOMO mentality.
Fear of Missing: ("Fear of Missing Out", referred to as "FOMO"), specifically refers to the kind of anxiety that is always worried about losing or missing something, also known as the "outsider's dilemma".
I estimate that in at least the next six months, there will be a large number of projects and imitations emerging, and DeFi will always be a hot spot in the Ethereum ecosystem.
As long as DeFi remains popular, the demand for Ethereum will inevitably remain strong. Because ETH will be the most direct and convenient trading medium for purchasing DeFi tokens. This demand for ETH brings about a driving force for rising currency prices that cannot be compared with speculative trading. Although it is not yet certain whether this demand can be compared with the ICO of the year, its energy cannot be underestimated.
I have already reminded readers in my article on July 24, "In the DeFi tide, the smartest people are buying Ethereum".
The prosperity of DeFi will bring about a huge increase in the demand for Ethereum, and then there will be another big meal that will go online-this is the launch of the Ethereum 2.0 beacon chain.
According to recent news released by Vitalik and the core developers of Ethereum, the Ethereum 2.0 beacon chain will most likely be launched before the end of the year, and the launch of the beacon chain will require at least 130,000 validators to participate. Each of these 130,000 verifiers needs to mortgage 32 ETH. In total, this requires about 4 million ETH to be mortgaged.
Although this amount is a drop in the bucket compared to the current circulation of Ethereum, the effect of this mortgage activity will spread to the entire currency circle. I believe that the number of people participating in the mortgage will be much higher than 130,000, and the number of ETH mortgaged will be much more than 4 million. This demand will drive more participants to buy ETH.
When the upward momentum brought by the price of Ethereum is superimposed on the momentum brought by DeFi to the price of Ethereum, it is not 1+1=2 but 1+1 is far greater than 2. Among all the digital currencies in the circle, the second one cannot be found.
Therefore, in the next six months, Ethereum must be the leader in the entire circle.
I would like to remind readers again that within $400 is a good long-term investment price for Ethereum. I hope everyone can seize this last opportunity.
