Ethereum breaks new highs, this article will take you to understand the logic behind it
The Bitcoinwin digital currency platform market shows that BTC has maintained a high level of volatility in the range of 33,000-38,000 for many consecutive days, and the direction and situation are unclear. BTC obviously has lost the strong upward momentum it had at the beginning. The K-line shape seems to have reached its peak. It's easy to judge, but at this time, ETH's performance is very impressive, breaking through the historical high of 1400. According to the latest market quotation of Bitcoinwin, ETH is currently reported at 1322, and the highest in history has hit 1438.
Many people may not understand. According to the past practice, ETH follows BTC linkage. In most cases, ETH depends on BTC's face to rise and fall. In recent months, ETH seems to be more unilaterally independent. The main reason is that there are too many positives for eth. Whether it is the hoarding of coins by large households or the 2.0 pledge, it is a real positive. According to relevant news, the Chicago Mercantile Exchange CME will also launch ETH futures on February 8, 2021. At present, this It is in the final review stage. If the eth futures are successfully launched, ETH will follow the pace of btc on the CME, and the entry of new traditional investors will push the price of eth to a new height.
Institutional investors are optimistic about Bitcoin, the first high-quality cryptocurrency, and Ethereum is the second consideration target. Compared with Ethereum, other mainstreams have advantages and characteristics that are hard to match. This is from Grayscale’s position in ETH It can be seen in the attitude.
In November 2019, Grayscale Bitcoin Trust (GBTC) applied for registration with the SEC for the first time, and it was officially approved in January 2020, becoming the first digital asset tool that meets the standards of the US Securities and Exchange Commission.
On October 12, the registration application submitted by the cryptocurrency asset management company Grayscale Investment in the United States Securities and Exchange Commission (SEC) was officially approved. A digital currency investment vehicle for obtaining filing company status with the SEC.
As one of the few encrypted digital asset compliance trust funds, Grayscale Ethereum Trust (ETHE) has the most direct impact of obtaining the status of reporting company in the SEC, which is that it will be open to more investors-many mainstream institutions or investors Previously did not prefer or were not allowed to invest in trust products that have not been reported by the SEC.
This may also be the reason why Grayscale filed an application with the SEC. The Grayscale Ethereum Trust has become the world's largest Ethereum investment vehicle. As of the latest public data on October 21, Grayscale’s cryptocurrency management scale has reached US$26.9 billion, of which Bitcoin Trust (GBTC) and Ethereum Trust (ETHE) are US$22.4 billion and US$3.9 billion respectively. Then 2021 is likely to be the "highlight year" of Ethereum, and BTC cannot even be compared with it.
In the past few years, especially from the beginning of 2018 to May 2020, the performance of ETH was really unsatisfactory. It’s no wonder that the overall market was not good in those years, the second was that ICO was suppressed, and the last is that the entire ETH ecosystem did not have any substantial benefits to drive the price to continue to rise.
It wasn't until around May 2020 that the DeFi storm began to sweep the entire counterfeit currency market. At this time, people saw that the value of ETH was still there.
One advantage of the popularity of DeFi is that it has established the future direction of Ethereum, or even the breakthrough and development direction of the entire blockchain industry in recent years, that is, to be the underlying platform of decentralized finance and to realize Internet finance. The "inclusive finance" that can be achieved has also made many blockchain users truly feel the users and charm of the blockchain.
At present, the ecology of Ethereum is too perfect, especially after the popularity of DeFi in 2020, the concept of traditional financial circles has been copied to ETH more and more, and there are "decentralized versions" based on ETH . On many other public chains, there is not even a thing that can barely be called an "asset", let alone a DeFi infrastructure.
Behind the price rise in the secondary market, many indicators of Ethereum have actually reached historical highs. As a side confirmation of the development of the Ethereum network, it may help us to further understand the actual situation of Ethereum as of now, and the future possible distances.
Ethereum’s 10 metrics are all at new all-time highs:
1. The network utilization rate is full, and the "global settlement layer" goes further
2. The hash rate hits a new high, and Ethereum miners are still "full of money"
3. Derivatives began to prosper, and the total open interest of options reached a new high
4. The number of DeFi users is rising steadily
5. TVL (total lock-up volume) has reached a historical high
6. DEX trading volume ushered in explosive growth
7. Ethereum speeds up the siphoning of Bitcoin
8. Grayscale’s ETH trust holdings hit new highs
9. Ethereum + Stablecoin, a dominant player
10. The ETH in the deposit contract goes up all the way.
We can say that DeFi saved Ethereum, but DeFi may also be Ethereum’s self-help concept after the DApp concept became cold on Ethereum. But in any case, Ethereum has found a new story, and this story is currently developing in a good direction, both in terms of concept and data, and it has re-established ETH as the "king of public chains" throne.
OK, we already know the logic behind the skyrocketing ether, so back to the market, we can also compare the trend of BTC and ETH, as shown in the figure below. Obviously, the recent trend of ETH is healthier, with stronger upward momentum and stronger activity. It can be seen from the Bitcoinwin platform market that after January 10, BTC continued to fluctuate and fall, and the correction range was quite large, while ETH was advancing steadily, step by step, and continued to rise. This clearly confirms what we said above: ETH has more upward momentum and activity than BTC.
From the current point of view, the potential of ETH has not been fully tapped. In addition to the gradual implementation of ETH2.0, DeFi continues to be hot, and its growth in the next few months is expected to be much stronger than that of BTC. What's more important is that ETH has broken a record high, and there is no longer a hold on the market. There is a vast space above it, and it is flat. Moreover, ETH has not yet started the accelerated rise mode, and is still at the bottom of the stage.
Different from BTC, the current price of BTC has only doubled compared to the 17-year historical high, while ETH has just reached the 17-year historical high. Therefore, it is predicted that there is still at least 50% of the space above ETH.
