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1) The bullish signal of Ethereum is obvious

There are several sets of data below, let's take a look together:

• Glassnode data shows that the open interest of Ethereum futures has exceeded $4.5 billion, a record high. Since the beginning of 2021, the open interest in Ethereum futures has been growing steadily. On January 1, 2021, the value was less than US$1 billion, and the increase this month has exceeded 450%. This data shows that people's expectations for Ethereum are increasing, and they are more inclined to hold rather than trade.

• Messari tweeted today that Ethereum has surpassed Bitcoin to become the largest settlement layer in the encryption field, and the settlement volume in 2020 has exceeded $1 trillion. The daily trading volume of Ethereum exceeded $12 billion yesterday, and the daily trading volume of Ethereum has been higher than that of Bitcoin since the end of June. According to this data, the activity of Ethereum is very high, and Ethereum has become the most used cryptocurrency. The increase in transaction frequency will inevitably lead to an increase in demand.

• Active Ethereum addresses have surged, with the number of daily active Ethereum addresses doubling so far in 2021 to 550,000, according to on-chain data provider Santiment. This data shows that the number of active users of Ethereum is increasing, more users will participate, and more funds will be involved in Ethereum transactions.

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2) The rise of DeFi will boost the further development of Ethereum

The currency circle in 2020 is definitely a year for the development of DeFi, and too many excellent DeFi protocols have emerged. Compound and Aave are currently the DeFi lending platforms with the best user base and the widest application. Uniswap, Curve, and Balancer are some of the most widely used decentralized exchanges. MakerDAO is a DeFi project that created the stable currency Dai, and it is also the earliest DeFi project. Synthetix is ​​a DeFi project used to track the value of physical assets. It is a decentralized synthetic asset platform on Ethereum. Yearn is a set of DeFi projects that integrate loan aggregation, income aggregation, and insurance. Its tokens once surpassed BTC and created the popular "Uncle" series. Nexus Mutual is an alternative community-based insurance platform that allows members to insure against the risk of vulnerabilities in smart contracts. Aragon is a platform for launching and managing decentralized organizations (DAOs), typical applications such as Aave and Curve.

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3) Ethereum 2.0 will continue to bring about a tightening of ETH liquidity

At present, the Ethereum network is too congested, which seriously limits the development of Ethereum. Ethereum 2.0 carries many expectations of the Ethereum community. The goal is to support thousands of transactions per second, so that applications can be faster and cheaper. use. ETH2.0 aims to improve scalability through sharding technology, greatly increase the throughput of the blockchain network, and improve the performance of the entire network operation. Ethereum 2.0 is a POS chain that requires pledged tokens to operate.

According to beaconcha.in data, the current number of verifiers exceeds 63,600, and up to 900 new verifiers join every day. According to data, the balance of Ethereum 2.0 deposit contracts has exceeded 2.6 million ETH, which shows that investors have confidence in the next generation upgrade of Ethereum.

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4) The impact of currency depreciation under the global epidemic

The global epidemic is still not under effective control. It is foreseeable that the global economic environment will not improve significantly in the next period of time. Under this premise, the means of stimulating the economy, printing money, will be further proposed and implemented. Recently, the new U.S. President Biden also publicly announced a $1.9 trillion economic stimulus plan, and the depreciation of the dollar is on the way again.

In this case, more and more funds will be invested in the encryption field. After all, the encryption market has surpassed the traditional investment field in the past 2020, and has delivered an answer sheet that satisfies investors.

Ethereum, an excellent target with a lower value than Bitcoin, is bound to get more attention. Bitcoin is already too high, and the potential of Ethereum will be even greater. Moreover, Ethereum has also been listed on the Chicago Mercantile Exchange (CME), a world-renowned futures and options exchange, and more traditional investors are bound to pay attention to and participate in investing in Ethereum.

It is very worth looking forward to the outbreak of Ethereum in 2021, and optimistic about the future of Ethereum.