Ethereum has not been making the headlines for some time now since the decentralized finance (DeFi) boom started slowing down. However, it does not mean that the crypto is crashing. All of the talk in the crypto world this week has been focused on Bitcoin. The crypto has managed to make significant gains after news about PayPal has come in to support it.
PayPal has boosted the upward momentum that pushed bitcoin to crack the $13,000 mark. Bitcoin prices surged even further and recorded new 2020 highs after hitting $13,200.
In the meantime, Ethereum has just caught a small wave of hype, even though industry experts think that it could grow even more. As the launch of Ethereum 2.0 comes closer every day, it is highly likely that ETH’s price will surge to a new high.
Ethereum has just gained about 4% after it started the week at $380. On October 21, ETH managed to surge and reach $400but it could not stay the course, and instead, it slumped. But, on an extended scale, the crypto managed to do better and it outperformed bitcoin by a factor of two. Currently, the crypto is hovering around $400 consolidating its gains awaiting the next price action.
That performance might continue for the next several months as the fundamental, on-chain, and technical indicators strengthen. There is another boost that is based on the current prices of both cryptos. ETH is trading at almost 70% below its all-time high compared to BTC which is just 35% below its all-time high.
ETH Is Growing
Vitalik Buterin, the Ethereum founder, said that ETH is more than a hedge against falling fiat and it can perfectly be described as a complete financial ecosystem. He thinks that ETH should cease being seen as an altcoin since it has developed and experienced a lot of general growth in the last 5 years.
A massive 9 million ETH is locked in DeFi today. It translates to about 8% of its maximum supply and points to an upturn of over 200% since the start of 2020. A huge percentage of Bitcoin is held in cold storage while ETH is getting invested to earn more ETH and rewards that also come in other crypto assets.
Several institutional investment funds including Grayscale have jumped into ETH since it is viewed as undervalued. DeFi has been the biggest catalyst for ETH prices in 2020. The impact has been considerable, although not as much as the Initial Coin Offerings (ICO) to Ethereum prices three years ago. The next possible notable driver of the ETH prices will be the unveiling of Ethereum 2.0.