Ethereum (ETH) is Ready to Jump

Ethereum (ETH) is Ready to Jump

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While Bitcoin proponents are talking about the incredible earnings from the volatility of the first cryptocurrency, experts are drawing attention to the leading altcoin and predicting its fast rise.

On the largest exchange Binance, something happened that often happens during periods of turbulence in the markets: the lucky guy received 400% profit from one operation when the BTC price in momentum jumped to $50K.

Ethereum’s volatility, reaching 80%, also gives speculators opportunity to make good money. However, experts argue that the main thing is ahead: when switching to Proof of Stake, new users will join the Ethereum community, and the staking rule – i.e. the need to keep at least 32 ETH on the account – will support the ETH capitalization. Demand will rise, supply will decline, and the price of ETH will skyrocket, to speculators’ joy. As always in such an uncertain situation, there is the opposite prediction: the cancellation of mining can lead to the exodus of users, after which the price will drop. But this probability is assessed as negligible. Still, most investors positively perceive the chance to get a guaranteed income of 5%, which Vitalik Buterin promises after the launch of Ethereum 2.0.

Experts also note record performance of the Ethereum network. The crypto data aggregator Coin Metrics announced that the Ethereum blockchain recorded a new level of contract calls – 3.11 million per day. Contract calls are requests for specific functions of a smart contract; they are an indicator of the intensity of network use. The Ethereum blockchain is used as the backbone in the ecosystem of decentralized finance (DeFi), their explosive rise just caused a record number of contract calls. A breakthrough in the use of the network immediately affected the capitalization of ETH, it grew by more than 15% in a week, and in terms of dynamics, ETH outperformed other altcoins. Transaction fees are up over 76% over the week, according to Coin Metrics. And the price of the coin has risen by almost 80%.

Pessimists argue that this is all the rise in ETH associated with the upcoming launch of Ethereum 2.0. They expect a drop after that.

Optimists argue that the current events are just the beginning of the ETH rally, which will last until the end of the year when Ethereum 2.0 is likely to be launched. Although Vitalik Buterin claims that this will happen in November. Meanwhile, during the week, transaction fees on the ETH network averaged $1.5 M per day, versus $500K per day on the Bitcoin network.