With all the benefits, Ethereum will plummet?

Last Tuesday, the Ethereum 2.0 beacon chain was launched as scheduled, marking a new step in the development of Ethereum and officially turning to the road of POS expansion.

In the past month, ETH has risen from US$390 to US$635 (December 1), setting a new record for the year, and the highest monthly increase has reached 60%, setting a historical record for the single-month increase in the past two years.

The price of ETH has been hovering around $600 for the past week. Many people predict that with the completion of the launch of Ethereum 2.0, the benefits will be exhausted, and ETH will usher in a sharp correction.

crypto traderLivercoinIt is believed that the selling pressure in the area below $600 has forced it to fall many times, and the seller will soon gain the upper hand. It is very likely that ETH will fall below $500 in the next week.

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Institutional users buy, buy, buy

As the second largest encrypted asset in the world, the current circulation market value of Ethereum has reached 86 billion US dollars. Although there is still a big gap with Bitcoin's market value (approximately 360 billion US dollars), Ethereum's performance this year has far surpassed Bitcoin and other mainstream currencies.

From the beginning of the year to the present, the cumulative increase of Ethereum has reached 360%, while that of Bitcoin has increased by 167%. ETH is also among the top five cryptocurrencies by market value, and has the largest increase this year.

And, due to the vigorous development of DeFi, Ethereum has also won the favor of Wall Street giants this year.

Bloomberg strategist Mike McGlone said that although TRON and other public chains have entered DeFi, Ethereum is still the preferred blockchain network."dominance"B.

BloombergBloombergDuring the interview, he compared the popularity of ETH to Bitcoin, adding that Ethereum has been able to attract the attention of institutional investors.

According to a Grayscale report, 17% of new funding in the Ethereum Trust came from new institutional investors in Q3 2020. This suggests that investors new to the cryptocurrency space are favoring Ethereum over Bitcoin.

The buying demand from traditional financial investors also stimulated Grayscale to increase its position in Ethereum. According to TokenView data, Grayscale has increased its holdings of 256,000 ETH in the past month, an increase of more than 10%. Currently, Grayscale holds a total of USD 1.685 billion worth of ETH assets, accounting for 2.5% of the entire ETH circulation market value

The frantic buying demand also drove the premium rate of Grayscale Trust ETHE to soar. At the beginning of November, the premium rate of ETHE was only 51.7%, and has continued to rise since then, and the current premium rate has reached 120%.

(Note: Grayscale will split the shares of the Ethereum Trust Fund in the near future, which will help reduce the unit price of ETHE and promote the subsequent price rise.)

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Deposit contract pledge volume surges

On November 24, the Ethereum deposit contract reached the minimum activation threshold of the ETH2.0 genesis block (524288 ETH).

But this still hasn't dispelled the enthusiasm of ETH users, the enthusiasm for deposits is extremely high, and the deposit volume continues to soar.

As of press time, the deposit contract has received a total of 1,156,545 ETH, exceeding the target; the first deposit address has pledged a total of 83,264 ETH.

The current pledge amount of ETH in the deposit contract is equivalent to 1% of the circulation of the Ethereum network, which also exceeds the expectations of many developers.

V God, the founder of Ethereum, said in a post: "Now 1% of the total circulating ETH is in the deposit contract, which is still much better than I expected!"

It should be noted that the pledged ETH will have to wait at least 1-2 years before it can be unlocked and circulated, which is equivalent to reducing a certain amount of circulation.

in addition,

in addition,DeFiPulse The data shows that since the beginning of the year, the ETH locked on the chain has increased from 2.92 million to 9.2 million, with a maximum increase of 215% and a cumulative increase of 136%. At present, there are nearly 7 million ETH locked in various DeFi protocols, accounting for about 6% of the total supply.

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How does the profit order behave?

In the first two points, we analyze the future price trend of ETH from the perspective of long-term buying and selling.

On-chain analysis company

On-chain analysis companyIntel After analyzing BTC, ETH, and XRP, it is found that: BTC and ETH did have certain profit-making exits and cashed out in the past week, but the amount of cash-outs was not large, and the impact on prices was limited; while the amount of cash-outs for XRP was relatively large, reaching 51 billion dollars, and had a greater impact on the price, XRP once pulled back 25%. This also shows that investors are more optimistic about the market outlook of ETH and BTC, and will not choose to cash out in large quantities.

“XRP appears to be at higher risk of massive profit-making compared to BTC & ETH. Over the past 7 days, the average inflow to Bitcoin exchanges is only 9% above the 180-day average, and Ethereum 13% higher. Exchange inflows should be carefully watched as increased amounts will lead to greater price volatility,” said Intel.

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(ETH reserves in the exchange)

In the long run, with the continued advancement of ETH2.0 and the vigorous development of DeFi, the long-term price of ETH still has room to rise. Compared with BTC, which has set a new record high, ETH is still far from the 2017 bull market high ($1400). short distance. However, there are many factors that affect the short-term market. Odaily still wants to remind investors to be alert to risks and not to chase high with high leverage.