Personal offer with profitability from +100%
More details

Ethereum will be the main asset for investors in 2021

EthereumPreviously, all the attention of investors and speculators was always focused on Bitcoin. Perhaps deservedly so. Bitcoin still holds more than 50% of the capitalization of all cryptocurrencies, most of the news about cryptocurrencies is somehow related to Bitcoin.

Large investors and hedge funds, distributing part of their billions among various types of assets, began to consider cryptocurrencies, namely Bitcoin, as an investment vehicle.

However, new challenges and shocks of the past, 2020 revealed new trends. For example, the fact that the value of Bitcoin is somewhat exaggerated. And that in the shadow of the first cryptocurrency over the years, a monster has grown that will be able to "eat" Bitcoin as the main cryptocurrency within a few years.

Yes, that's right, it's Ethereum.

Cryptocurrencies are up very strongly in 2020, starting from the lows in March. However, the rate of this growth was different. So, the BTC / USD rate has grown by about 700%. At the same time, the growth of ETH / USD quotes amounted to a record 1200%.

Moreover, the Bitcoin exchange rate has been consolidating for several weeks and losing its position, on average by 30% since the beginning of January. At the same time, Ethereum quotes continued their growth, setting a new absolute maximum of $ 1475.

An experienced investor looks not at absolute numbers (bitcoin rate 33000, ethereum rate 1450), but at the rate of growth of the value of the cryptocurrency. Based on the numbers we see, Ethereum is considered a more valuable cryptocurrency than Bitcoin.

The likelihood that Ethereum will continue to grow in 2021 is very high - professionals are interested in profit, and the crowd is interested in what is shown in the news.

That is why housewives buy Bitcoin and professionals buy Ethereum.

Ethereum's value among developers has grown exponentially

Ethereum has been the most popular blockchain platform before, and has further strengthened its position over the past year. Even though Ether's initial growth was fueled by a bubble of worthless startups in 2017-2018. As soon as the financial pyramid on the ICO collapsed, a natural outflow of investors followed, and the price of the Ethereum cryptocurrency fell.

Ethereum

But dummies were replaced by blockchain projects that solve real problems in the modern world. And in this niche, the niche of the platform for creating tokens for decentralized applications, Ethereum takes a leading position.

Competing platforms in the niche: Tron, Polkadot, Cardano, Cosmos, and Tezos.

These are serious opponents, however, Ethereum has an undeniable advantage: it is a proven option. There is already a critical mass of projects here, and choosing between a popular platform and a less popular one, developers choose Ethereum.

The number of transactions is growing

The number of applications on Ethereum is growing - the number of transactions in the cryptocurrency is growing. More than a trillion dollars worth of transactions were carried out in 2020. This volume already exceeds the transaction volume of most traditional e-wallets such as paypal. Paypal makes 5 times fewer transactions, which means that it earns 5 times less commission for them.

Ethereum will be the main asset for investors in 2021

Each transaction increases the ETH deficit, which means it leads to an increase in the value of the cryptocurrency. The demand for internal transactions in Ethereum has grown so much that people are willing to pay increased fees to process them.

Which is another factor explaining why the Bitcoin rate is falling, while the Ethereum rate is growing.

Development of the decentralized finance sector

The leader among cryptocurrencies is Bitcoin. The leader among decentralized cryptocurrencies is Ethereum. The financial services sector is growing, driven by tokens, of which Ethereum is the largest ledger.

Due to the bullish growth of the end of 2020, the beginning of 2021, the volume of this market has grown 30 times. That cannot but affect the cost and value of the crypto assets serving this niche: Ethereum, Tron, Polkadot, Cardano, Cosmos, Tezos.

Ethereum

First of all, Ethereum, which has a huge army of fans and an ever-growing community.

Large investors want to snatch their piece

Any new rapidly growing market after reaching a certain volume becomes interesting for institutional investors. The market for decentralized cryptocurrencies has grown so much that this interest is becoming more and more evident. Hedge funds and simply rich people begin to buy cryptocurrencies, further increasing and accelerating the growth of quotations.

Summary

We have cited facts confirming that the growth of Ethereum quotes is not so much due to speculators, but due to the steady growth in the value of the cryptocurrency itself, and the growth of opportunities for its use.

That is why the growth forecast for ETH / USD for 2021 is positive.

If you have a different opinion, share it in the comments.

Heading:
Tags:

Leave a Reply

Your email address will not be published. Required fields are marked *

Online charts

Forex charts

Cryptocurrency charts

Exchange commodities

Stock indices

Forex brokers rating

FinmaxFX
Amarkets

Popular posts

[wpp header_start='

' header_end='

' range='last7days' thumbnail_width=150 thumbnail_height=90 stats_views=0 limit=5 order_by='views']

Last notes

Popular tags

Comments

Recent Comments

    ABOUT THE PROJECT

    Real-time charts and quotes: Forex currency pairs, cryptocurrencies, stock charts, online commodity charts. Forecasts for tomorrow. If you want to know the forecast of the cost of cryptocurrency for tomorrow, for the week ahead - follow our forecasts, subscribe to the telegram channel. By using the site, you agree to the terms of our User Agreement. Any use of site materials without the written permission of the administration is prohibited. In case of violation of these requirements, the site administration reserves the right to protection in accordance with applicable law.
    The fact of opening positions in financial markets is not a guarantee of profit. You may not only earn nothing, but also lose money. The site owner is not responsible for the results of your decisions. We only provide you with information (for comparison and objective decision-making) about the prospects for changing the rates of a particular financial instrument, you make the final choice yourself. The content of the site is for informational and reference purposes only and is not a recommendation or offer.
    © 2021 chartsforecasts.com Copying of site materials is prohibited.
    menu-circlecross-circle