In recent days we have seen how the value of Ether (ETH) has gradually risen until reaching a new high. Now the Ethereum cryptocurrency has exceeded $300 USD per unit, let's see why this increase in its value is due.
Ethereum, One block chains most important in the crypto ecosystem, thanks to its incredible potential, is experiencing a very significant return in its value. After remaining close to $230 USD per unit, as the value of Bitcoin is getting closer and closer to $10.000 USD, Ether (ETH) also experiences a large increase.
As of the date of this publication, ETH has a value of $311,96 USD per unit, an increase of almost 35% compared to its value at the beginning of July. But the increase in the value of Ether is not only due to Bitcoin rising in price, but also to the increase in usage levels that the Ethereum ecosystems are experiencing, especially those related to decentralized finance (DeFi), which are gaining more strength every day among millions of users around the world. The new type of DeFi, known as “yield farming” or yield farming, allows users and investors to generate income through staking of its cryptocurrencies and assets, a modality that is attracting increasing interest to the Ethereum ecosystems.
Likewise, Ethereum developers recently announced that the latest test network for the implementation of the first phase of Ethereum 2.0 will be launched on August 4, another event that is positively influencing the increase in the value of Ether (ETH).
It may interest you: Ethereum 2.0 will launch its latest testnet in early August
Main factors influencing the bullish movement in the price of ETH
Since the price of Bitcoin began to move, after remaining dormant between $9.000 USD and $9.200 USD, Ether (ETH) also began to experience a new level of growth, which led it to break above the descending trend line that several traders had set, close to $245 USD.
Now, the new value that ETH reached in the last few hours also indicates a great growth in interest in DeFi ecosystems, which are currently promoted with a great boom, which surpasses even the fever of the altcoins in 2017. For their part, the announcement by developers about the progress that they promise to implement the Ethereum 2.0 update at the end of this year, are also an important and influential factor in the new value of the cryptocurrency. The new update will migrate the Ethereum blockchain from the Proof of Work (PoW) to the protocol Proof of Participation (PoS), improving network scalability.
On the other hand, the recent decision of the Office of the Comptroller of Currency that US banks will begin providing custodian services for cryptocurrencies, It has also given a big boost to the markets. Although many consider that these actions go against the principles by which cryptocurrencies were created, many others, such as Brad GarlinghouseCEO Ripple, also consider that it means a great step that will lead society towards the mass adoption of crypto assets.
Recovery of ETH value in the face of the pandemic
The 35% increase reflects that Ethereum managed to recover the market losses caused by the COVID-19 pandemic at the beginning of March, when the cryptocurrency fell below $110 USD per unit. Although the current value of $311,96 USD is not a historical maximum for Ethereum, since in February 2018 it exceeded $1.800 USD per unit, the new value does reflect a recovery of more than 180% in its value, compared to the last five (05) months.
Currently, daily transactions in the Ethereum DeFi ecosystems, on the platforms Compound, MakerDAO y Aave They exceed 3 billion dollars in funds deposited on these platforms.
Importance of Ether (ETH) in the market
Ether (ETH), the Ethereum cryptocurrency developed since 2013 by Vitalik Buterin, is the second most important cryptocurrency on the market after Bitcoin. ETH managed to be one of the few cryptocurrencies that, despite being based on the Bitcoin blockchain, adopted its own concept. Thus, Ethereum allows endless possibilities that until now are not possible directly on the Bitcoin blockchain, such as the creation of token usage for financial and value exchange uses, for internal company voting and much more. Likewise, Ethereum allows the creation of decentralized applications (dApps), smart contracts (smart contracts), Decentralized Autonomous Organizations (DAO) and the famous decentralized finance (DeFi), all this thanks to its unique protocol, programming language and system.
Continue reading: European corporations and organizations choose Ethereum as the preferred blockchain to use financial services
