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Why did eth suddenly soar in 2020 (why is eth valuable)?

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Why did eth suddenly soar in 2020? After the release of ETH 2.0, the market valu

Why did eth suddenly soar in 2020 (why is eth valuable)?

Why did eth suddenly soar in 2020? After the release of ETH 2.0, the market value of ETH increased from $20 billion to over $100 billion, and it has continued to rise for two months. There are many reasons for this surge in eth. First, the popularity of DeFi projects has caused the price of ETH to skyrocket. Second, the recent significant increase in ETH’s price indicates that the bull market cycle is not coming to an end so quickly, making it highly possible for ETH to break through the $10,000 mark again. Currently, ETH has reached its lowest level, but if it is seen as a good benchmark asset, its trend will be very strong. Therefore, there are many reasons for this upward trend of ETH, such as the upcoming launch of ETH 2.0, the increasing staking rewards on the ETH 2.0 testnet Rococo, and more. Of course, these issues also need to be considered before the launch of the ETH 2.0 mainnet. The third factor is ETH’s deflationary mechanism and the contract upgrade of ETH 2.0.

In fact, as early as June of this year, there were news reports suggesting that ETH 2.0 would launch at the end of October. According to CoinGecko’s statistics, the locked value on the ETH network has reached $4.77 trillion, with Compound (COMP), Aave (LEND), and MakerDAO (MKR) being the top three in terms of locked amount.

The genesis time of ETH 2.0 is expected to be December 1, 2020, which is the beginning of 2021. Therefore, ETH2 will be one of the future trends for ETH’s development.

Why did eth suddenly soar in 2020? In the past few months, Ethereum has experienced many ups and downs, including the launch of ETH 2.0 shards and the forced cessation of support for ETH token trading on the decentralized exchange platform Ethfinex, which has sparked discussions within the community about the successful implementation of Ethereum 2.0. However, with the continuous rise in ETH’s price this year, the circulating supply of ETH has been rapidly expanding, with over 200,000 people participating in this process as of the time of writing.

According to the ETH whitepaper, since 2019, the development team of ETH 2.0 has been working on introducing the PoS consensus algorithm to the PoW chain, making ETH more stable and scalable. This technological development has also spawned some new ecosystems, such as UniswapV3 and Curve, which are based on the Ethereum network and issued under the ERC-20 protocol.

Why is eth valuable?

According to ethnews, the initial total supply of Ethereum was 303,000 coins. Based on the current price of ETH at around $4, eth currently has a market value of over $20 million. In the past 24 hours, the price of eth has risen by 200% (approximately 160%). However, if we carefully analyze this number, we can see that it is much lower than the level during the bull market in 2017.

Why should you buy eth? Because eth is the only decentralized currency system in the blockchain network. It protects transaction content from malicious attackers and fraudsters by storing transaction data on a block. When users send tokens with their wallets, smart contracts automatically execute the transfer. These fees are paid as staking rewards to validators or other miners based on ETH. So, when you use ETH for transfers, there is no risk involved.

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