Ether (ETH) shows a significant increase during the period from December 11 to 18, 2020. ETH2 climbs to the 4th step of the podium in terms of staking. Investors are thrilled, but the new version of Ethereum has yet to prove itself to developers looking for a robust solution to build a solid infrastructure for DeFi.
Bitcoin isn’t the only one to shine this week
TheEther opened the day of December 11, 2020 at around 558 USD. TheETH is trading at 647 USD at the time of writing.
TheEther broke the $ 600 mark on December 16, 2020 as Bitcoin (BTC) finally exceeded 20,000 USD. TheEther closed the day with a large green candlestick, recording a daily gain of over 8%.
While Bitcoin received the $ 22,000, theETH reached a new high for the year 2020, at 656 USD on BitMEX.
The pump of December 16, 2020 comes just after the Chicago Mercantile Exchange (CME) announced the launch of derivatives ETH in 2021.
Staking is (already) a success on ETH2
TheEthereum 2.0 is already the 4th largest network using Proof-Of-Stake, in terms of total value blocked in staking, just 6 weeks after publication of the deposit contract.
According to data from Staking Rewards, more than 1.5 millionEthers, or about 1.5% of the supply ofETH in circulation, were deposited for staking. The current remuneration for staking on ETH2 is around 13.20% per year.
TheETH2 attracts investors but, will it be able to solve the scalability problems of the current network, to better support the growth of DeFi in 2021?
A report of Dapp Radar indicates that DeFi projects will form the backbone of the cryptocurrency economy in 2021. Total Dapp transaction volume increased by 1,178% in 2020.
TheETH2 It may already satisfy investors looking for passive income, but now it must help developers meet the technical challenges of DeFi protocols.
There is a bit of Bitcoin in Ethereum: coming soon to CME derivatives and possibly massive adoption of ETH by institutional investors? Ethereum offers something solid, “more concrete” with Dapps, DeFi, a good alternative for institutions fearing, wrongly, an empty BTC without added value.
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