This is why ETH surged over the weekend

ETH 2.0 upgrade is coming soon

ETH has been performing very well with a 20% increase on April 6 - the highest since March 13. Crypto No.2 is currently up 7.41% in 24 hours, down most in the early Asian trading hours.

According to many industry experts, the increase may be due to the eagerness to wait for the upgrade of the entire ETH 2.0 system expected in July 2020.

ETH 2.0, commonly known as Serenity, promises to offer higher transaction throughput and a new proof-of-stake security model (PoS). The upgrade has been in development since 2015 but hasn't garnered much public attention due to the high technical expertise required to use it, even now.

Damien Brener, founder and CEO of OpenZeppelin - Ethereum's leading security audit firm:

“From a developer's point of view, Ethereum is the most popular blockchain, where most of the smart contracts and dapp activities occur. People realize that Ethereum's network effects specifically revolve around the community and the ability to combine (ETH smart contracts interacting with each other) is stronger than they think, which can increase confidence in the platform. and therefore higher prices. "

Jehan Chu, co-founder and managing partner at Hong Kong-based investment and blockchain trading firm Kenetic, also agrees with Brener. Following the 5-year development cycle of the Ethereum network, no single cryptocurrency can challenge its leading position. Specifically:

“ETH is still the second veteran coin in the world of cryptocurrencies and recent price movements show the long-term confidence of traders in its market position. Except for the price, the way Ethereum continues to advance to ETH 2.0 and addressing legitimate criticism of its speed and network scalability are expensive details. In today's environment, it is important to survive and without a protocol, the developer community exists at this level that is better than Ethereum. ”

DeFi is redefining the platform

Over the past year, decentralized finance (DeFi) has emerged as a major factor in the blockchain space. DeFi is a project that uses smart contracts to lend, hedge or swap assets. While there are many blockchain platforms capable of performing this function, Ethereum has established a dominant position.

Currently, more than $ 745 million is locked in DeFi, of which almost all are on the Ethereum network. The figure more than doubled from a year ago and although it decreased in March, it once again grew. Clearly, investors are paying attention and understanding that DeFi has strong potential to bring Ethereum into the mainstream financial market.

Maker is by far the most popular DeFi platform, empowering Ethereum. However, many other DeFi projects are emerging. In addition, Chainlink is the most popular oracle network, also works on Ethereum and is becoming an important player in many DeFi projects.

ETH futures skyrocketed

Once the price has recovered, so does the trading volume. Most notably, ETH futures volumes have skyrocketed in the past 24 hours. Skew Analytics has just posted data on Twitter showing a strong correlation between the current price increase of ETH and the volume of futures.

"Mass futures contract doubled over the average 2 last week

OkEx is clearly leading and has recently been announced as the largest derivatives exchange by last month's volume, showing strong interest in ETH trading in Asia.

It is worth noting that the sharp rise of futures volume often leads to rapid volatility and price adjustment if too many investors place long positions on the ETH price.

You can see the price of ETH here.

Thuy Trang

According to AZCoin News

Follow the Twitter page | Subscribe to Telegram channel | Follow the Facebook page

Crypto loans are only from 5.9% annual interest rate - you can use the money effectively without selling coins. Earn up to 8% interest per year with stablecoin, USD, EUR & GBP with insurance up to 100 million. Come on, get started now! →