Guide: After the end of the decline of Ethereum on April 24, the market has been going up all the way, constantly breaking new highs. As the price rose, the market value of Ethereum once surpassed Wal-Mart when the price broke through $4,000.
According to coinmarketcap, the current total market value of Bitcoin is 1.091 billion US dollars, while the total market value of Ethereum is 447.5 billion US dollars, which is close to half of the total market value of Bitcoin. From the low point of Ethereum last year to the present, Ethereum has increased by about 17 times, far higher than the increase of about 4.7 times by Bitcoin, and with the arrival of Ethereum 2.0, the markets expectation index for Ethereum has risen sharply, According to Google Trends data, the global search popularity of the keyword Ethereum broke through the level at the beginning of 2018, hitting a record high, and the highest search trend popularity reached 100.
As a distributed computing platform, Ethereum is different from Bitcoin in that, on Ethereum,Not only can you keep accounts, but you can also run programs on it,The figurative metaphor can be understood as, Bitcoin is like the beeping machine of the year, which only has the function of notifying messages; Ethereum is like the PHS of the year, in addition to sending messages, it can also play games, make calls, and has more functions. wider. Therefore, the market has strong expectations for Ethereum in terms of technology applications, decentralized platform development, and smart contracts. It is also believed that Ethereum is the digital public chain that is most likely to replace Bitcoin and become the industry benchmark.
Bitcoin sang all the way in the first half, and Ethereum rose steadily in the second half
The reason why Bitcoin soared all the way in the first half of the bull market, Maoqiu Technology analysis believes that it is mainly due to three factors: the raging new crown, the release of the US dollar, and the blessing of institutions:
1. The new crown is raging:Since the outbreak of the new crown virus, whether it is the domestic market or the international market, all walks of life are in a state of asset tightening and pessimistic sentiment. Up to the real industry, such as real estate, tourism, catering, etc., down to the financial sector, such as stocks, funds, banks, etc., have suffered heavy setbacks, and the global economy has fallen into a depression. The difference is that the encrypted digital industry has bucked the trend and become a global hotspot.
In the panic of the coronavirus, Bitcoin continued to rise steadily, outperforming gold and stocks, making some investors firmly believe that encrypted assets have greater anti-risk performance than other safe-haven assets, and are worth allocating assets. Investors firm beliefs have supported Bitcoins continuous breakthrough from $9,000 to a record high of $41,000 in January this year since September last year, and then continued to slow down to a high of $60,000 until now. The situation improved, and the price showed a regional shock market.
2. Release of USD:According to the data, the ratio of global government debt to GDP rose from 90% in 2019 to nearly 105% in 2020. In fact, from 2001 to 2020, various sovereign currency countries have been continuously over-issuing currency, especially the United States, which has been particularly intensified in recent years. According to the report, during the current U.S. political election, the total amount of money printed was as high as 24 trillion in just 48 weeks. The bill.
How does the release of the dollar ensure that the richs own assets do not shrink, and can also bring about asset appreciation? It has become a problem that top-level buildings have to consider and solve urgently. In addition to allocating assets such as gold and stocks, this group of people also targeted encrypted assets. And Bitcoin is known as digital gold, which is consistent with the characteristics of golds limitation and global consensus. For the current flood, Bitcoin has undoubtedly become the best high-quality asset with the ability to avoid risks. As a substitute for gold, Bitcoin is even better than gold.
3. Institutional support:This round of bull market can drop from 3.12 to 3,800 US dollars and continue to rise to 60,000 US dollars. Another factor that has to be said is institutions. As one of the promoters of this round of bull market, institutions have contributed a lot.
According to the survey, there are about 20 investment institutions entering the Bitcoin market, including Goldman Sachs, Morgan Stanley, Fidelity, JP Morgan and other well-known global investors. These institutions hold a total of about 1,151,618 bitcoins, accounting for about 5.48% of the circulation, with a total value of about 3.1 million US dollars, which is equivalent to the market value of Swedish online payment company Klarna, and its scale exceeds that of Deutsche Bank.
The enthusiasm of many institutions to enter the market has also driven the emotions of various investors. According to Grayscales report The Great Wealth Transfer Promotes BTC to Become a Mainstream Investment Target, the survey data show that:In 2019, the number of investors in Bitcoins potential market was about 21 million, but in 2020 it has grown to 32 million. In 2019, 53% of investors said they were familiar with Bitcoin, and this has grown to 62% in 2020. More than 50% of the respondents predicted that digital currency will become mainstream before 2030.
Such a high approval rate is also unprecedented in the encrypted asset market. Maoqiu technology asset observers also believe that 2020-2021 will be a new starting point for a new chapter in the new year of the encryption market. The encryption asset market is still in its youth stage, and there is still a lot of room for development and growth in the future.
Now, the first half of the bull market has brought about the first turning point. In layman’s terms, Bitcoin’s staged performance in the first half of the bull market has ended, and it needs to be quiet for a while. Next, let’s see how Ethereum performs? On May 10, Ethereum has broken through 4,000 US dollars, reaching a maximum of 4,210 US dollars, and its market value has reached 447.5 billion US dollars, surpassing Wal-Mart, and it is still short of the current total market value of Bitcoin of 1.091 billion US dollars. Maoqiu Technology believes that if Ethereum can maintain such an upward momentum, it is expected that the market value will surpass Bitcoin.
Many factors contributed to the rise in the price of Ethereum, and investors were enthusiastic
Hair Ball TechnologyHair Ball TechnologyIt is believed that the momentum of Ethereum is mainly due to the following factors:
1. Ethereum 2.0 is coming soon.According to the technical roadmap in the Ethereum white paper, Ethereum should enter Serenity in 2020 at the earliest, which is version 2.0 of Ethereum. However, due to the slow development progress, ETH 2.0 has been repeatedly postponed; on the other hand, due to the recent active Defi transactions, the Ethereum network was once very congested, and the transfer fees remained high. These problems have led to the tepid performance of ETH.
We all know that Ethereum 2.0 is a major upgrade of Ethereum 1.0. After the upgrade, the consensus mechanism of Ethereum has changed from POW to POS, and the latest technologies such as beacon chain and sharding have been adopted, and the performance has been greatly improved. It can be said that Ethereum will undergo a qualitative leap from 1.0 to 2.0. The first is that the TPS speed will be greatly improved, from the current 20 transactions per second to as high as 1280 transactions per second. At the same time, in terms of technology, 2.0 will experienceBeacon chain launch, shard chain, new consensus mechanism integrationetc. The technical research department of Maoqiu Technology stated that the upgrade of Ethereum this time will promote the blockchain technology to another level, and will usher in further changes in both ecological landing and application development.
2. Investor enthusiasm is high.According to the Google index, the global search popularity of the keyword Ethereum has exceeded the level at the beginning of 2018, and it has reached a record high just like its currency price. At the same time, according to Santiment data, since January this year, the number of giant whale users who own more than 10,000 Ethereum has been rising. As of April 26, the number of users holding more than 10,000 Ethereum has reached 1311 indivual.
Hair Ball TechnologyHair Ball TechnologyIt is considered that market investment is shifting from one sector to another.
3. The value is developed and recognized.The favor of Ethereum by many large companies and organizations has led to the discovery of the underlying technical value of Ethereum, and this discovery is first based on senior developers who can understand Ethereum, and then gradually spread to the surrounding population, and due to the use of Ethereum Developing applications as an infrastructure is a common demand, further allowing the value of Ethereum to be discovered and increased.
Maoqiu Technology also believes that the reason why Ethereum is valued by many investors and institutions is mainly because of its huge contribution to the industry at the level of technical application. According to statistics, more than 80% of blockchain projects are developed based on Ethereum, that is, 100 projects, more than 80 are built on Ethereum.
We dont know where the road of Ethereum will develop in the future, and we dont know whether it will surpass Bitcoin. The markets expectations are good, but as a member of the historical trend, Fuqiu Technology is given to investors A sentence is:Jump out of the side to see the world, you will get unexpected gains.
