In this opportunity, we bring you the 5 most prominent factors that could boost the price of Ethereum this 2020.
Once the first month of 2020 is finished, crypto users are waiting to see positive results for Ethereum. After several bad seasons, this new decade promised many advances for the digital currency.
And the wait has paid off. In fact, Ethereum started the month of February much better than the leading cryptocurrency, Bitcoin.
But what are the key points of this new success for the asset created by Vitalik Buterin? Here we show you the five most prominent.
Eyes set on Ethereum 2.0
The long-awaited Ethereum 2.0 update will finally begin to implement its first phases this 2020. It is expected that, with the update, several digital currency problems will be solved, such as those related to scalability and security.
The high expectations surrounding this project may be influencing the price of the cryptocurrency. In addition, it is expected that the closer the date of publication of these updates, the more trust is generated among users.
A superior monetary policy
With the monetary policy of the cryptocurrency, reference is made to Ethereum’s total supply and how much of that percentage is used in decentralized applications (DApps).
In case the supply of Ethereum is not sufficient to support rapid adoption, he explained that it is a burden on the Ethereum network to retain all demand.
On this point, Lucas Campbell, a member of Fitzner Blockchain Consulting, explained that:
“If financing without permission is the case of using Ethereum that drives value, the largest money protocols that consume between 5 and 10% of the total economic bandwidth to feed global finance are not out of the question. However, for Ether to successfully deliver financing without permission and without confidence to the world, it will require a large amount of economic bandwidth to support it. ”
Increase in decentralized finances
Every day there are more people who decide to bet on the digital world to carry out their daily activities. Either interact through social networks, gain knowledge and even store your funds.
In part, this is one of the reasons why cryptocurrencies have had such a boom lately. Because, in the digital world, crypto currencies have the advantage.
This is another reason why Ethereum can see its next big moment this 2020. Since it is one of the most used cryptocurrencies for decentralized finance issues.
To improve the entire transactional procedure, it is necessary to improve the scalability of digital currencies. It is believed that this year Ethereum will improve even more than the rest of the digital currencies due to the updates it plans to improve this aspect.
The innovative network
The innovations that were made and continue to be made in the Ethereum Blockchain represent one of the most important differentiating elements of the cryptocurrency. In fact, before it began its deceleration period, it was the ETH blockchain that gave added value to this asset.
I am a student of International Studies, interested in new technologies and their impact on the world. Faithful believer that tenacity is the basis of success.