Ethereum the bullish Crypto
Updated: Feb 16
Ethereum or Ether cryptocurrency recently broke above $1,400 for the first time in two years. Here are three events that could push the price even higher in the next few months.
Ethereum, the second-largest cryptocurrency by market capitalization, set a new all-time high of $1,439.33. This is the first time the digital asset has been over the $1,400 level since Jan. 13, 2018. Ethereum’s YTD gains now total 66.15% – over 6x higher than the leading cryptocurrency and outstripping both Polkadot (DOT) and Chainlink (LINK). Despite experiencing a temporary correction, it is still one of the strongest performers among the top 10 assets in this year.
While there were no obvious fundamental catalysts to spur the rise to a new all-time high, ether had been close to breaking the key level for over two weeks after climbing to $1,350 on Jan. 10. The potential growing market for decentralized finance, known as DeFi – which now holds over $24 billion worth of crypto assets in its protocols – was also a likely contributor to the bullish momentum behind the asset. Now, with Ethereum heading closer towards uncharted territory, all eyes will be on the second-largest cryptocurrency hitting its next major milestone, the psychological $2,000 mark. This fabled level is more than a 50% gain away from the current price (at press time), but there are 3 major events scheduled to go live in 2021 that could help make this possible.
Ethereum is in the process of transitioning from a Proof-of-Work blockchain to one that operates using a Proof-of-Stake consensus mechanism, with the goal of becoming a faster, more efficient, and more scalable platform. There are four separate phases to the Ethereum 2.0 upgrade – Phase 0, Phase 1, Phase 1.5 and Phase 2 – each laying the technical foundation for the next until the final phase is completed.
Phase 0 went live on Dec 2020, and saw the implementation of the Beacon Chain – a new blockchain layer that will coordinate activity between individual Ethereum shard chains.
Phase 1 is the next stage in Ethereum’s development and will see the launch of 64 shard chains. All transaction activity across the network will eventually be divided among and processed by these separate blockchains. The benefits of this new system will be that transactions won’t need to be validated by the entire network, only by a single shard chain. This will greatly reduce the time it takes to confirm transactions, and it means the overall network will be capable of handling significantly higher volumes without suffering the level of congestion it currently does.
While there is no confirmed date for the launch of Phase 1, it’s expected to arrive sometime in 2021.
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