New Year’s Day gave the market a good celebration. BTC rose to 34,000 US dollars and ETH rose to 1,000 US dollars, a strong bull market flavor.
The previous article said “8 signs that ETH has entered a bull market, what do you think? “. At that time, the price of ETH was $539. Now ETH is about to hit $1,000.
BTC has been continuously hitting new historical highs, and ETH is still more than $400 short of the historical high of $1422. It is estimated that the breakthrough will be ahead.
How high will ETH reach in the future? Many people predict that the market value of ETH will exceed BTC. What do you think?
1. ETH’s DeFi
ETH is still that ETH, still so congested, but the DeFi lock-up volume has been rising, and it is now 27 billion US dollars.
The locked-up funds in DeFi have increased by 27 times in 2020. So how much will it increase in 2021? It is something to look forward to.
DeFi depends on the ETH ecology. Regardless of the increasing congestion of ETH and the higher and higher GAS, the DeFi ecosystem of ETH has stronger vitality and original ability. Even imitating disks and vitality are things that other public chains cannot match.
Of course, DeFi on other public chains also has many opportunities to make money because the market needs hype.
2. The GAS fee of ETH is expensive but it is used
The GAS fee on ETH was not cheap. Now that the price of ETH is rising, the GAS fee is even higher. A DeFi operation, which is hundreds of RMB, is enough to eat a Haidilao meal.
The operating cost on ETH is so high, and things are so expensive. Why don’t so many cheap public chains have to play DeFi on ETH?
This is like saying that Beijing, Shanghai, Guangzhou and Shenzhen have expensive housing prices and traffic congestion. In comparison, second- and third-tier cities are much more comfortable, but a large number of people still go to Beijing, Shanghai, Guangzhou and Shenzhen because there are more opportunities.
Here is what you think about the “8 signs that ETH has entered a bull market?” “” on this issue.
1) ETH chain user base: daily living addresses are flipped, block space demand reaches new heights, network costs are leading the public chain; (Shenzhen’s population is increasing, land demand is high, and land prices are expensive)
2) Assets carried by ETH: Carrying USD 16 billion in stable currency assets and absorbing 150,000 BTC; (Shenzhen is a young city with an average age of 32)
3) The largest application of DeFi on ETH: DeFi users will increase by 10 times in 2020, and locked-up funds will reach 27 billion US dollars. Among them, DEX matches directly to CEX. (Shenzhen has developed Internet technology, and even the United States suppresses technology companies in Nanshan District, Shenzhen from time to time)
3. Algorithmic stable currency, a hot spot in DeFi
The most popular DeFi on ETH recently is the algorithmic stable currency, from AMPL to ESD to Basis, accompanied by a series of imitations, the market is very restless, and funds are very active.
Regarding algorithmic stablecoins, the public account “Xiaozha Chat” also wrote a lot.
Many people ask me what an algorithmic stablecoin is. The algorithmic stable currency at this stage is just a fund disk and a fund game. Only when the market value of the algorithmic stablecoin grows to an order of magnitude will a qualitative change occur. This is like BTC. The larger the BTC, the stronger the consensus.
Algorithmic stablecoins are a big track. The stablecoins were originally the playthings of large institutions. Now that the algorithmic stablecoins are released, retail investors have the opportunity to surprise institutions.
The bottom-up reform of algorithmic stablecoins is certainly not easy. Naturally, stories of life counterattacks and bloodshed are indispensable, and the process is magnificent and the fight is fierce.
Participating in algorithmic stablecoins requires caution, and opportunities and sickles coexist.
