Why does the price of Ethereum keep soaring?
Yesterday morning, Ethereum 2.0 has reached the minimum number of pledges (524,299 ETHs). The genesis block will be completed on December 1, and the number of pledges continues to rise, currently exceeding 700,000.
You must know that a week ago, the number of pledges had not yet reached 100,000, and it was still far away from the minimum number of pledges. It won't accelerate even if it fails.
I think it is more worth looking forward to when the number of pledges reaches 5 million ETH. After changing the issuance rules of Ethereum, the annual issuance volume is about 4.6 million. If the number of pledges exceeds the annual issuance volume, it will reduce market circulation. Quantity, the value of which is unlimited.
According to the current speed, if 100,000 Ethereum pledges can be made every two days, it is not impossible for the goal of 5 million pledges to be realized around the Chinese New Year.
Putting aside the future and applications, I will explore the reasons for the skyrocketing price of Ethereum for everyone. The following content is only obtained from personal analysis:
1. In recent days, a large amount of ETH has been pledged to 2.0 addresses, and this data has been on a slow upward trend until last Friday, which has led to many people being pessimistic and thinking that 2.0 cannot be completed as scheduled. However, the completion of the pledge of hundreds of thousands of ETH within a few days caused its progress to soar, which instantly reduced the liquidity of the market, causing the price of Ethereum to rise to a maximum of $620 in recent days. This is the first and most important factor affecting price fluctuations. one of the reasons.
2. The performance of applications in the Ethereum ecosystem is strong. Cryptocurrencies such as YFI, AAVE, and UNI have frequently made big moves recently, bringing the GAS fee back to the price during the DeFi boom. The market continues to be positive and the income of miners has increased. Before the completion of the PoS transformation, the PoW method is still one of the best efficiencies to obtain Ethereum. Under the influence of the dual events of the US election and Ethereum 2.0, Ethereum mining machines were purchased in large quantities again, which is also the reason for its price increase one of the factors.
3. I think there is one person who played a big role in this, and he is the founder of YFI, Andre Cronje. The price of KP3R launched on October 28 has increased by 3800%, and the price of Zlot launched on November 9 has increased by 1000%. All of their first launches are Uniswap, and they themselves are also one of the applications in the Ethereum ecosystem, and these applications All of them have been associated with YFI, which has attracted many large funds to enter the market. Many people still hold these three currencies. He himself has become the Elon Musk of the blockchain industry. The recent Deriswap covers various functions of decentralized finance.
4. Ethereum 2.0 started to start staking. Officials have begun to prepare teaching operations in various languages, and are constantly improving the operation steps. Even after reaching the minimum pledge requirements, Ethereum 2.0 simplifies the pledge steps to pave the way for a larger ecological construction in the future. The operation of the official team is extremely beneficial.
Now the price of Ethereum has rebounded again, which is quite normal. At the same time, the project parties mainly based on layer 2 have also begun to make efforts to prepare for a better future. What can be seen is , On the way to change the world, the blockchain will never be late. This time, Ethereum 2.0, which is enough to be recorded in the annals of history, is the best proof.
Welcome to pay attention to the public account [Xiao Zhang talks about blockchain], which will continue to bring you content updates in the blockchain field. You can enter the WeChat community to discuss the future of blockchain together.
Welcome to pay attention to the public account [Xiao Zhang talks about blockchain], which will continue to bring you content updates in the blockchain field. You can enter the WeChat community to discuss the future of blockchain together.
