Case study of the recent bullish rally of Ethereum

  • Since this new year, Ethereum has gained more than 45% of its value
  • The total value locked in Ethereum has reached $2.4 billion, as more than 1000 validators have locked their funds in ETH 2.0 contract
  • The allowance of the blockchain and stablecoins has also helped the token to leap
  • Ethereum has surpassed the leading crypto-token in terms of daily settlement

Observing the bullish sentiments and entry onto the list of top 100 assets by market cap, it seems like this year Ethereum (ETH) has a great start. Since the start of this year, ETH has gained more than 45% and surpassed the threshold level of $1,150, since its last price rally in 2018. However, on Ethereum 2.0, the higher value of ETH means higher earning for validators and a higher barrier for entry of new network participants by holding 32 ETH.

The market value of validating Ethereum is soaring

Over the last two weeks, we observed that the rewards earned by validators of ETH 2.0 is hovering near 0.008 ETH/day. Indeed, the market value of these earnings has risen from approximately $5-8 per day. On the other hand, the price rally of ETH locked in the network reached $2.4 billion. Since 30th December 2020 more than 1000 validators have locked funds into the Ethereum 2.0 contracts. However, the deposited funds’ validators in the ETH 2.0 contracts will begin to earn in a few weeks. Indeed, the new participants staking ETH 2.0 will now have to wait roughly for 20 days to use the network. The rate of eligible validators online helping progress the blockchain is hovering in the range of 96-99% since last month.

The US OCC helped ETH achieve the giant one day leap

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Earlier this week, the Office of the Comptroller of the Currency (OCC), permitted the use of stablecoin and blockchain technology to banks. After the news was released the price of Ethereum faced a giant one day leap, crossing the level of $1000, with a surge of more than 30%. According to Antoni Trenchev, the co-founder of Nexo, some of the price movements of ETH can possibly be the effect of institutional pressure. However, the reason behind the surge was the high demand for block space on the Ether network, which was generated after the news.  

ETH surpassed Bitcoin in terms of daily settlement

As the investors are in difficulties to enlarge their portfolio after observing the soaring price of BTC, witnessing Ethereum at such a level is no wonder. Following the current scenario and data from the Market Movers, it is observed that Ethereum has surpassed the leading crypto-token, in terms of daily settlements. Observing the situation, Nick Carter, the co-founder of Castle Island Ventures, noted that the rise in value could be frustrating for the decentralized finance (DeFi) sector. Still, it’s suitable for the Ethereum network.

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Ahtesham Anishttp://www.thecoinrepublic.com
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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