What is ETH telling us this week? đ
Since the beginning of October, the price of Ethereum has risen sharply, from 1,480 euros to 1,694 euros, an increase of 53% in one week đ
Several factors can explain this performance.
1 âą Ethereum benefits from the growing popularity of decentralized finance (DeFi) applications, which offer innovative financial services accessible to all, without an intermediary. The total value locked in DeFi protocols reached a record $16.8 billion on October 24.
2 âą Since Ethereum is the dominant platform for hosting these applications, it takes advantage of the increased demand for ETH to pay transaction fees and participate in different protocols.
3 âą Ethereum benefited from the positive anticipation of investors and developers regarding the major update of the network, called Ethereum 2.0. Which serves to improve the scalability, security and energy efficiency of Ethereum, by moving from a Proof-of-Work and Proof-of-Stake mechanism.
4 âą The launch of the null phase of Ethereum 2.0, which consists of deploying the Beacon chain, is scheduled for December 1st! Explanation đĄ
To do this, 524,288 ETH must be deposited into a smart contract before November 24. As I write this, over 100,000 ETH have already been deposited đwhich shows the enthusiasm and confidence users have for the project.
5 âą Ethereum benefited from the favorable context of the cryptocurrency market in general, driven by the rise in Bitcoin, which exceeded $35,000 on October 23.
In conclusion, Ethereum had an exceptional week, thanks to its ability to innovate and reinvent itself. However, it remains to be seen whether this upward trend will continue in the coming weeks, or whether it will be followed by a correction. đ
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