Ethereum to the Moon? ETH Shows Sustainable Growth, But May Soon Collapse

Ethereum to the Moon? ETH Shows Sustainable Growth, But May Soon Collapse

Source: Cryptoonliner

While the attention of the players was paid to bitcoin, XRP, and DOGE, Ethereum has been steadily growing in value. How will the rally of the leading altcoin end?

The flow of news from the cryptocurrency market in recent weeks has not touched the second cryptocurrency. But ETH shows steady positive dynamics without big highs, but also without lows. All this time, the amount of ETH that users are investing in the ETH 2.0 smart contract has been growing. According to Glassnode, on January 29, the value of the invested funds amounted to $4 billion. And now a new maximum is set, $4.1 billion.

It was announced that with the transition of the Ethereum blockchain to the Proof-of-Stake consensus algorithm, users can become validators and receive passive income if they agree to block at least 32 ETH on the account. Coins are locked until Ethereum 2.0 is fully launched. This will happen in about 1.5 – 2 years. The fact that the number of blocked ETH is constantly growing speaks of user confidence in the Ethereum update and of the good prospects for this network.

Ethereum blockchain is used in most DeFi projects. Last year, DeFi was a hit and allowed hundreds of percent of profits to be earned, even with performance issues. After the launch of ETH 2.0, these problems will not exist, because, according to prospects, the network performance will exceed 100 thousand TPS.

Why do users place such trust in ETH? Not only because of the updated blockchain future usefulness. Both ordinary investors and traders have made sure that investments in ETH are paying off right now. Since March 2020, when all markets collapsed due to the pandemic, ETH has already grown 17 times. The drivers of its growth were not only reports of successful updating according to the roadmap. The PayPal network has added cryptocurrency payments including ETH, Bitcoin, Litecoin (LTC), and Bitcoin Cash (BCH). This message was positive for all four currencies.

According to PayPal, the demand for cryptocurrencies immediately increased by 2-3 times. By the end of the year, ETH was up 730% from its March low. A message from the Reddit portal about a partnership with the Ethereum Foundation was also positive for ETH. This promises more reliable and faster development of the Ethereum blockchain functionality.

ETH is currently rising in anticipation of the launch of Ethereum futures on the Chicago CME. This will happen on February 8th. Earlier, when the CME announced the launch of bitcoin futures in late 2017, this also caused its price to rise. An all-time high of $20K was reached. But immediately after the launch of futures on December 18, 2017, BTC began to decline.