Hong Kong, China -- (ReleaseWire) -- 02/24/2021 --After the price of Bitcoin continues to break through all-time highs, Ethereum seems to be unwilling to show weakness. On February 20, 2021, as the world's second-largest cryptocurrency by market value, the price of ETH broke through 2000 USDT and hit a record high, which has increased by 168% since the beginning of the year.
In fact, the rise of Ethereum this time is mainly driven by two factors.
First, the surge in investment by institutional investors and retail investors in Bitcoin has also led more and more people to understand cryptocurrencies and have a great interest in investing in cryptocurrencies. Since the beginning of the year, the price of Bitcoin has soared from $32,000 to more than $57,000.
Second, decentralized finance (DeFi) is booming, and many DeFi projects are running on the Ethereum blockchain. In the past few years, the market has been looking for "killer apps", and now DeFi is the best answer. Decentralized financial services allow people to borrow, accumulate interest and exchange assets without going through financial institutions. According to DeFi Pulse data, there are currently more than 70 DeFi applications based on Ethereum, and the total lock-up value of these applications has exceeded US$42 billion. In addition, among the top 50 Ethereum-based projects, only two non-stable currency projects suffered losses (ERC-20 HEX and Compound Dai). Others have shown an upward trend, and the price of 34 projects has more than doubled.
Paul Veradittakit, partner of Pantera Capital, a cryptocurrency venture capital firm, said:
ETH's breakthrough of $2,000 proves the scalability of Ethereum and the accelerated growth of applications around DeFi and NFT. This proves that Ethereum is still the market leader in creating decentralized applications, all of which ultimately make Ethereum an institutional-level asset class.
Jordan Spence, Chief Marketing Officer of MyCrypto, a wallet management tool, believes that the price increase of ETH is caused by a combination of many factors. He explained:
The rise in the price of ETH represents the climax of the entire cryptocurrency industry's work in recent years, and more and more people are starting to catch up and want to participate. We have seen a lot of growth between Ethereum and DeFi, and ETH 2.0 is also moving forward.
Since Ethereum has such a strong potential, where should we invest in Ethereum?
It is better to focus on the Asian exchanges. Because European and American exchanges often face regulatory pressures. The SEC has now replaced a new leader, who is said to be unfriendly to cryptocurrencies. Investors now want to make some money in this bull market, of course, the less affected by off-market factors, the better.
The most glorious aspect of Ethereum in the Asian exchange is ZB.com. ZB.com, formerly known as CHBTC, was established in June 2013. It is one of the earliest digital currency exchanges and has not had any fund security incidents in seven years. The well-known media CNN has reported that CHBTC is one of China's largest digital currency exchanges; Nasdaq reported that CHBTC's Bitcoin transaction volume is the world's largest. At the beginning of 2016, the Ethereum project was officially developed and launched. CHBTC, as the first exchange to list ETH and ETC, once occupied 50% of the world's ETH trading volume and more than 70% of the ETC trading volume.
CHBTC has been active on the front line of the blockchain since its establishment and has a very unique vision. It has excavated high-quality projects many times, allowing users to reap a lot of benefits from it. It is also called the king of altcoins in the cryptocurrency field. With these strong competitiveness, ZB.com, that is, CHBTC at that time, quickly accumulated a group of loyal users, and attracted a group of celebrities including the founders of Ethereum to come to discuss cooperation.
ZB.com is still one of the most well-known exchanges in the world, but it is more low-key than exchanges such as Huobi and Binance. ZB.com currently focuses on technical strength and user ecology. What users experience on ZB.com is definitely better than other exchanges. Up to now, ZB.com is still the world's leading digital asset exchange in terms of trading volume. Therefore, investing in Ethereum at ZB.com is a very good choice.
ETH 2.0 will upgrade the current Ethereum network from proof of work to proof of equity. It will be officially launched in 2020, but it is not yet fully functional. However, the Ethereum community hopes that Ethereum 2.0 can solve the problem of network congestion, thereby allowing value to flow more freely on the network, and reducing the pressure on rival blockchains.
In any case, the Ethereum community has won $2,000. As for the next thing, let us wait and see.