After seeing a major bearish correction in the last week, Ethereum (ETH) is now back on its feet.
The world’s second-largest digital currency by market capitalization traded at just $ 2,060 amid the deep drop the overall market received. At the time of writing, Ethereum is trading at $ 2,449.66, which represents a gain of 11.20% in the last 24 hours over an additional 8.93% in the last week.
Ethereum’s resurgence is fueled by the understanding that competing chains in the decentralized finance (DeFi) ecosystem cannot actually unseat the Ethereum network as the go-to chain for smart contracts and DApps. The alleged Ethereum killer Binance Smart Chain is also having scalability issues, restoring interest in Ethereum as a whole.
Additionally, the Berlin update of Ethereum went live on the network’s mainnet shortly before the market crash. While the bear market’s weight in the past week prevented the bulls from recalling the positive effects of the update, the ongoing resurgence is a testament to the expected impact of improvements to the protocol. Among many other things, the Berlin update will serve as a precursor to the EIP 1559 update that will revise the fee structure and make Ether a deflationary asset.
Ethereum 2.0 growth adds fuel to the race
Glassnode’s on-chain data shows that total deposits are made on Ethereum 2.0, the network’s proof-of-stake (PoS) model. According to the data, the valuation of the deposits crossed more than $ 9 billion, with a current value of $ 9092.018991 million.
Growing deposits are important to the health of the network as a whole. It implies that stakeholders are optimistic about the future of the Ethereum network and are appropriately investing in it. While specific enhancements are likely to drive an impromptu upgrade on the crowded blockchain, Ethereum 2.0 has been seen to be the ultimate solution to all network problems.
With the resurgence underway, Ethereum is poised to break through its all-time high of $ 2,600.
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