Positive developments for ETH are near!
Ethereum (ETH) has recently started to come up with claims that it can pass Bitcoin (BTC), just like in 2017. While the total market value of the leading crypto currency Bitcoin (BTC) is $678 billion, it is seen that Ethereum is wandering at $291 billion.
Everything is Just Beginning for Ethereum
Ethereum is down 9.5% in the last 24 hours. Bitcoin, on the other hand, proved that it still dominates the market, with a drop of only 7%, and altcoins have fallen much harder than itself. Although ETH is now starting to move out of its altcoin status, it is still seen as such in the eyes of many investors. Although the current decrease of the Ethereum price is very harsh compared to BTC, the number of factors that can cause the ETH price to set a record in the long run is increasing.
Ethereum 2.0 will definitely be the biggest change and rise trigger for Ethereum. With the transition of the Proof of Work based Ethereum network to the Proof of Stake based model, the criticized mining model will also disappear. Rather than the Ethereum price reacting positively to this, the change in reputation in the eyes of the institutional investor is important.
ETH with Changing Energy Model Can Be More Efficient
According to the Ethereum Foundation research, the energy consumption of the Ethereum network may decrease by 99% after this change. The energy consumption problem, which has been criticized by names like Elon Musk, may be history with this change of ETH. Of course, it should not be forgotten that the EIP-1559, which will be brought to the network when transitioning to ETH 2.0.
EIP-1559 is a protocol that will use a portion of miners’ income to buy ETH from the market and burn it. This will not only reduce inflation in the Ethereum network, but will actually lead to deflation. This update, which will be carried out in the summer, increases the excitement of many investors.
ETH ETF’s at the Door
The third important development for Ethereum was the sudden increasing interest of institutional investors. Although crypto investors often think of Bitcoin when they say ETF, an application has been made for the Ethereum ETF recently. After VanEck, it is now known that Wisdom Tree has filed with the US Securities and Exchange Commission for an Ethereum ETF.
Wisdom Tree has already managed to launch 3 cryptocurrency ETFs in Canada. Eric Balchunas, drawing attention to the interest in these, stated that he thinks things will get out of hand with the approval of the Ethereum ETF in the USA.
This can be expected to have a positive effect on the price.