◆ Reduction of Ethereum held by the exchange… Thanks to the strong DeFi
Cryptoquant, a cryptocurrency data analysis company, said on the 24th that “Ethereum was withdrawn (from the exchange) as the largest ever. 6590 Ethereum was transferred in large quantities as coins staked by investors on the exchange in an hour.”
SK Securities Research Fellow Han Dae-hoon cited the analysis and said, “It seems that DeFi deposits are falling a lot in line with the recent strong DeFi.” “It can be seen that there is little downward pressure from Ethereum for the time being,” he added.
Cryptocurrency media newsBTC analyzed that “Ethereum is very likely to lead altcoin’s next rally and there is room for a bigger rebound in the short term.”
According to NewsBTC, Ethereum is showing a 10% increase in both USD and Bitcoin trading pairs, and is trading at around $1450, which means Ethereum is ready to rise in the short term.
Some analysts have also come up with an analysis that the signal to enter the Ethereum long position has been detected.
◆ Three reasons why Ethereum is the best cryptocurrency this year
On that day, Cointelegraph published a column that summarized three reasons why Ethereum is the’best cryptocurrency of the year’. The column was cited as ▲ high demand from developers ▲ growth of DeFi ▲ increase in transaction volume.
Ethereum is the platform used by the most blockchain networks and DApps. Even after the ICO bubble ended in 2018, the number of Ethereum-based blockchain projects is increasing. Although there are competitors such as Tron, Polkadot, and Cardano, Ethereum is receiving the most attention as a project development platform.
Over the past year, the Ethereum blockchain has traded over $1 trillion. That’s higher than a large payment company like PayPal, with more than 350 million users and $200 billion in transactions per quarter. Ethereum transaction fees are a challenge to be solved, but the number of active wallets, transaction volume on the network, and average transaction size are still increasing.
DeFi growth is also contributing to the surge in Ethereum prices. At the beginning of last year, DeFi Protocol’s total customer deposit (TVL) was $697 million, but now it has jumped more than 3300% to $23.2 billion. Besides the DeFi project, most stablecoins are also being released based on Ethereum.
The column said, “Ethereum has grown 1200% since’Black Thursday’ in March, when the market collapsed due to the coronavirus pandemic last year, while the Bitcoin price growth rate was only 700%. I expected.”