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- Ethereum is running high on crypto exchanges
- Thanks to the DeFi projects, MFT projects, DeFi protocols, EIP 1559 and Ethereum 2.0
- However, analysts believe that Ethereum will give itself a tough competition
- Will this coin come out with flying colours or not?
Ethereum has been gaining a lot of attention from traders for some time now. It is regarded as one of the second largest cryptocurrency after bitcoin. The currency is soaring to new heights over the last year, along with the surging prices of bitcoin.
Bitcoin was at $20,000 per bitcoin in 2017, surging to almost $60,000 in recent times. Ethereum also showed great signs of improvement, and the price of Ethereum also entered the fresh territory, which is up 30% from its earlier peak in 2018.
Upgraded Ethereum
Now, the upgrade that has been proposed to Ethereum is making very positive news in the market. As per the proposed update, ether could make Ethereum more sound than bitcoin, as per the Ethereum cofounder Vitalik Buterin.
The new version EIP1559 is part of a larger move towards Ethereum 2.0. This will overhaul the network’s current transaction fee system. Users will send the fee to the network, deleting the miners from between.
Vitalik Buterin
Buterin has been working on ethereum since its inception and has asked a simple question that if bitcoin is sound money, then if there is a decrease in supply, does ethereum in this situation become obsolete? Sound money is the second name of currency’s stability and utility as a store of value.
Buterin reiterated that this upgrade to the ethereum network was approved by developers last week. This new upgrade will be completed in July, but he believes that this could reduce the Ethereum supply chain. If there is more demand to use Ethereum is high, there would be more ether destruction.
Ethereum’s Price rally
The price rally of Ethereum was noted 400% after the bitcoin and cryptocurrency market skyrocketed in October 2020, also amidst the surge of DeFi. They are used as cryptocurrency technology to recreate traditional financial instruments like loans and interest.
There are many DeFi projects which are running on the ethereum blockchain. Hence, the token is rising as users are using it greatly. Non-Fungible Token (NFT) is also another popular trend doing the rounds, which delved a lot of traffic on the Ethereum network.
Ethereum Miners
Many miners are working on the Ethereum blockchain, and some planned to go onboard once the upgrade happens. Some major miner groups are interested. Among them is Sparkpool. Amidst this rush, many rivals have emerged on Ethereum in recent times. They offer the same decentralized platforms with quicker transaction times and lower fees.
Antoni Trenchev, Managing Partner, a member of Digital asset manager Nexo, said that Ethereum would become the victims of its own success in this bull run. However, he expects to see that when EIP 1559 is released alongside the Ethereum 2.0 will be an interesting take.
