The price of ETH increased by almost 9% per day and is over $475. Thus, ETH has updated its high since July 2018.
ETH has risen by 254% since the beginning of the year. The capitalization of the leading altcoin is over $52 billion. What pushed Ether to rise? Two weeks ago, the Ethereum founder Vitalik Buterin admitted that upgrading to Ethereum 2.0 revealed more technical difficulties than he expected. ETH crashed on this news. But later it turned out that these difficulties are not so serious. No fundamental obstacles were found. This explains the current rally. The transition to Ethereum 2.0 is a long-awaited event, traders usually pump a coin in anticipation of an upgrade. So ETH becomes a market maker.
Earlier it was reported that on the Ethereum network, fees increased significantly, compared to July – by almost 1300%, from 40-70 cents to about $9. The transaction value began to rise since the beginning of the summer when the decentralized finance (DeFi) market revived. DeFi tokens run on the Ethereum blockchain. By the way, exchanges that deals with DeFi, are contributing to the growth of fees in their own way. Their trading bots inflate fees to make transactions go faster.
The Ethereum 2.0 update is precisely aimed at making the blockchain able to cope with a heavy load. The statement that the upgrade is proceeding normally gives hope that the network performance will stabilize, the prices for transactions will drop. And this also pushes the price of ETH up. The popular resource Whale Alert notes the movement of large amounts of cryptocurrencies in connection with this. In particular, it is reported that amounts over 175K ETH (almost $75 million) were transferred from address to address.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 175,823 #ETH (74,974,108 USD) transferred from unknown wallet to unknown wallet
— Whale Alert (@whale_alert) August 31, 2020
The paradox of the situation is that the ETH rally can pull Bitcoin with it. It usually happens vice versa, the rising BTC pulls the market with it. But now BTC is almost not rising, in a day it has added a little more than a percent. But Whale Alert noticed that large amounts of BTC were being withdrawn from the exchanges. More than 3000 BTC was withdrawn from Binance to an unknown wallet, 2500 BTC was withdrawn from OKEX, over a thousand BTC were withdrawn from Bitfinex.
As for DeFi, there are already favorites in this market. Experts pay attention that traders enter DeFi tokens via ETH. Popular trader Crypto Messiah notes the following coins: Curve (CRV), ACO (AUC), Cream (CREAM), Darwinia Commitment Token (KTON), Falconswap (FSW), Sperax (SPA), DegenVC (DGVC), and Mantra DAO (OM ). The capitalization of CRV, according to Crypto Messiah, will continue to rise rapidly, as will the AUC capitalization too. Cream has a well-developed ecosystem, with a market share comparable to Ethereum itself. The rest of the tokens have the potential to rise due to a stable market position.
ETH itself is predicted to reach a price of $500.