The Ethereum price is up a staggering 120 percent year-to-date from $126 to $278. It has front-run Bitcoin and the rest of the crypto market as one of the best performing cryptocurrencies of the year.
Ethereum dropped to as low as $115 in December 2019, leaving ETH down by around 91 percent from its record high.
As the cryptocurrency market generally started to rebound in anticipation of the bitcoin block reward halving in April, the Ethereum price started to pick up momentum.
The oversold nature of ETH combined with the highly anticipated release of Ethereum 2.0 and the rapid growth of the decentralized finance market.
DeFi is crucial for the mainstream adoption of Ethereum because it utilizes ETH as the main collateral.
ETH 2.0 supplements DeFi as it increases the overall efficiency of the Ethereum blockchain network through various technologies like second-layer scaling solutions and proof-of-stake.
Over $1 billion worth of ETH is now used as collateral on DeFi platforms, which indicates actual significant real-world usage of Ethereum.
In previous bull cycles, there was criticism that Ethereum and decentralized applications on top of it lack actual users and user activity.
The high expectations of faster growth in the DeFi market put together with the imminent release of scalability solutions are the two major fundamental factors backing the recent upsurge.
The fast expansion of the lending market is starting to garner the interest of top venture capital firms and thus the mainstream, which is a positive factor of growth for Ethereum in the medium to long-term.
What fundamental factors are backing the 120% Ethereum rally, and can it last?
Published on Feb 14, 2020
by Cryptoslate | Published on Coinage
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