Little by little, Ethereum (ETH) is advancing towards the top, since this week it has achieved 31.65% growth. With this, Ethereum breaks the $ 300 barrier, and here we explain the possible reasons. Furthermore, it has reached a new high in 2020 recovering all its losses during the market crash in March.
Why has Ethereum increased its price particularly this week?
There are several points that can be mentioned. For example, the Ethereum 2.0 update is getting closer every day. In addition, in parallel, the increase in the DeFi sector, or Decentralized Finance, has been sustained.
For weeks now, the possibility that what is happening with DeFi drives Ethereum has been discussed. After all, most DeFi platforms or smart contracts are based on Ethereum.
Also, investor interest in Ethereum options is considerable. This interest has reached such a point that these people acquired options of US $ 720 for five months from now. This shows the optimism that exists, although it seems quite improbable.
Let’s talk about ETH 2.0
The final Ethereum 2.0 test network is scheduled for August 4. In other words, we are less than two weeks away from knowing the start of this new and defining phase.
We know that the ambition of the project is that, a Blockchain as big as this one, will transfer all users, and their assets, to a completely new decentralized network. But, even more ambitious is that it will be done keeping all the operations in the old network, which will be active and in operation.
Naturally, this only fuels the optimism of buyers, investors and those interested in the second largest cryptocurrency.
The DeFi case driving the price of ETH
The latest increase in Ethereum activity DeFi pushed Ethereum transactions, and overcoming the barrier of US $ 300. If we look at the data provided by Glassnode about transactions with Ethereum we will see that it has only grown in 2020 .
But, particularly since the beginning of July, it looks like a rocket taking off little by little.
Thus, the Ethereum network executed more than a million daily transactions with ETH. Currently, DeFi apps on the Ethereum blockchain have more than $ 3 billion in funds on the platform. The top three DeFi platforms on the Ethereum network are Maker, Aave, and Compound.
All of the above together gives us a clear picture of what has been driving this increase of more than 30% in a matter of days. The latter can be corroborated by analyzing the weekly graph of the price of Bitcoin. It is in conjunction with the transaction confirm what we have established.
If you continue like this, Do you think the future of ETH will shine with a price higher than US $ 700? What are your expectations regarding Ethereum 2.0?
Whatever your answer, we can’t deny that Ethereum is pressing hard on the gas, though we don’t know for how long.