From being forgotten to leading the bull market, this article sorts out the logic of ETH 2020 outbreak
Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc), author: Wang Jiajian, published with authorization.
Editor's Note: This article comes from
Babbitt Information (ID: bitcoin8btc)
Babbitt Information (ID: bitcoin8btc)
Ethereum is definitely the leader of this round of gains.
In the past two weeks, Ethereum has skyrocketed by 75%, not only breaking through the pressure level of 360 US dollars, but also rushing all the way, hitting a high of 400 US dollars. Even though Bitcoin ushered in a sharp correction of thousands of dollars on August 2, Ethereum is still strong, leading the rise of all mainstream cryptocurrencies. This made a group of old leeks in the circle of friends sigh: I used to ignore you, but today you and I can't afford it.
Xu Kun, chief strategist of OKEx, is a well-known Ethereum fan in the cryptocurrency circle. In the past six months, she has not only tracked and studied Ethereum, but also "milked Ethereum" on various platforms.
Today, Xu Kun compiled for Babbitt an exclusive list of major Ethereum events in the past six months in her eyes. And we combine the opinions of multiple community Vs to briefly review what happened to Ethereum in the past six months? Why can it lead the way? In the future, whether it can continue to write legends.
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In February, Ethereum without halving is almost forgotten
In January, ethereum fell to an all-time low against bitcoin, and many felt it was doomed. At the end of January, the cryptocurrency came to the Chinese New Year market. Bitcoin led the rise of all mainstream cryptocurrencies, and the halving of mining coins was unique. Although Ethereum, which is not halved, has also risen, it is just a runner.
First, at present, the technology and application of Ethereum are the best in the public chain, and the ecology is relatively mature;
Second, Ethereum has a relatively strong consensus in the industry;
Third, from the perspective of the disk, Ethereum is still at the bottom.
In fact, even in the darkest time of prices, top practitioners have a very unified consensus on Ethereum. Qiu Xiaodong, head of the Xinghuo mining pool market, said: "Developers must first choose Ethereum because it is stable and safe. Many chains are more efficient than Ethereum, but so what? No one is doing applications on it. .”
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In March, with halving expectations and global central banks releasing water, everyone seemed to smell the breath of a bull market. However, the epic plunge on 312 immediately brought people's enthusiasm to a freezing point. Ethereum fell as low as $84.23. Many miners returned to zero overnight and lost the coins they had saved for several years. In that month, few people dared to mention the bull market anymore, and being alive was the best arrangement from heaven.
On March 23, Xu Kun posted on Weibo: "The digital asset market is small, and once there is liquidity injection, it can activate the market. Mainstream currencies such as BTC and ETH are already in a relatively reasonable valuation range. From a perspective, the digital asset market in the second half of the year is very worthy of attention.”
In absolute dire straits, not many, but not none, have hopes for the future. In March, Chang Jia, the founder of Babbitt, said in a live broadcast: "Under the epidemic, all safe-haven assets are falling, but in the long run, under the background of global central banks releasing water and rising inflation expectations, the market value of Bitcoin will continue to rise. Explosive growth of ten times or more in the past. It is expected to reach its peak in the second half of the year from June to October."
Why didn't the cryptocurrency rise in March when the world was flooded? Song Shuangjie, the founder of Tongtongtong, said in the recent live broadcast of the 8-question event: "A lot of good news, it is not immediate. Essentially, it is now in the process of an upward cycle."
April: The light of DeFi appears, a rainbow after the storm
April is still the month of Bitcoin halving, and Ethereum continues to be marginalized. But the story of Ethereum is quietly changing.
On April 23, Xu Kun wrote in his WeChat public account "Xu Kun's Sixianghui": "Ethereum first developed smart contracts, and then in Token, DAPP, Defi, each stage is a public chain competition. In March, the number of smart contracts deployed on the Ethereum network reached 1,971,632, a record high, an increase of 75% from the previous month. This is a valid signal.” She said, “The value of Ethereum has been Seriously underestimated."
In this article, Xu Kun focused on the application of Ethereum in the Defi ecosystem. She said: "Defi has a very large imagination space. In theory, all the functions of traditional finance can be mapped one by one on the blockchain. At present, we have seen that the Defi ecosystem has its own currency, that is, stable currency, which has transactions. Matchmaking, lending, derivatives, prediction markets, insurance, payments, etc.”
In May, Ethereum 2.0 took over the concept of Bitcoin halving, and ETH began to exert its strength
Bitcoin is halved as scheduled, and the halving story is coming to an end. What other concepts are worth speculating on? Finally, Ethereum 2.0, which has been bouncing tickets, gave people hope. ETH has taken the baton from BTC, and the runners have become regulars. Ethereum is about to lead the post-halving era!
On May 11, Xu Kun talked about Ethereum in a halving AMA. She said: "After the conversion of Ethereum to PoS, the threshold has been greatly lowered, and more small and medium users can participate in the Ethereum ecosystem. In the next half year It is worth looking forward to the expectation of Eth2.0 to PoS."
Ordinary people may only pay attention to the concept of Ethereum 2.0, thus ignoring a special data. On May 25, the number of ERC20-USDT transfers on the Ethereum chain hit a record high in a single day, reaching 208,107. Tether has become one of the largest consumers of Gas on the Ethereum chain. This reflects that Defi applications are on the rise.
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The earliest project to use liquidity mining was Synthetix, but on June 15, the Ethereum lending protocol Compound launched the liquidity mining of its governance token COMP. Soon, Compound’s share in the lending market soared from 10% to 80%. The value of its locked tokens skyrocketed, and the token COMP also skyrocketed, and its market value soon surpassed MakerDAO, the leading Defi project.
Compound started the liquidity mining frenzy with one person, and followed suit. Different Defi projects, such as Balancer, mStable and other lending, trading, insurance, etc., began to issue tokens in the form of liquidity mining.
Without exception, these Ethereum-based Defi projects have caused the value of tokens locked in the agreement to skyrocket. Today, the value of assets locked in the Defi agreement is close to 4 billion US dollars, with a monthly increase of about 100%. The total market value of DeFI tokens is also close to 8 billion U.S. dollars, and ten times coins and hundred times coins have reappeared in the arena.
Qiu Xiaodong said: "Because of Defi and other factors, the transaction fee on the chain is extremely high, and the transaction fee alone is close to 1/3 of the block explosion revenue." Interestingly, the idea of supporting mining with the transaction fee that Bitcoin has not yet realized It was first implemented on Ethereum. In Qiu Xiaodong's view, the main reason for this round of rise is the enthusiasm for Ethereum DeFi.
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In July, Ethereum 2.0 superimposed the Defi concept, and ETH entered the FOMO stage
In July, liquidity mining has reached a crazy level, but many people have discovered that these Ethereum-based Defi projects do not necessarily have to mortgage Ethereum, on the contrary, the locked amount of ETH is actually not large. As more assets, like Bitcoin, become collateral, the proportion of ETH is decreasing. Here comes the problem. Defi is on fire, but hasn't Ethereum captured more value?
On July 2, Xu Kun shared in a live broadcast: "In various Defi agreements, the share of stable currency and BTC as collateral is growing rapidly. This kind of multi-collateral is of great significance to the development of Defi. Asset types The richer you are, the more diversified businesses you can carry out.” She further pointed out that both Ethereum itself and ETH tokens have become more important. There are three reasons.
1. Although the proportion of ETH as collateral has declined, the overall scale has grown.
2. The activity of Defi has increased the demand for ETH as a gas fee.
3. Attracting more assets into one's own ecosystem is like attracting foreign investment into the local market. This will promote the systematic importance of Ethereum in the entire encrypted asset ecosystem, and it is also good for the basic value support of ETH .
On July 5th, at the Hangzhou Blockchain International Week, Xu Kun also shared 4 views.
1. The value of Ethereum is seriously underestimated, and the market will be driven by Ethereum in the second half of the year.
2. The amount of locked positions in DeFi will at least quadruple this year.
3. From the perspective of investment in DeFi, you can focus on the opportunities of secondary new stock rotation.
4. The entry of multiple collateral into DeFi will enhance the systemic importance of Ethereum to the entire market.
In fact, the original Defi participants have been in overseas communities, but in July, it was obvious that many Chinese entrepreneurs began to join the army of Defi projects.
Interestingly, this made many people forget about Ethereum 2.0, but in July, the good news of Ethereum 2.0 followed, and finally the testnet Medalla surfaced.
