Why Ethereum Leading the top Position in the Crypto World

By May 4, 2021DApps
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Ethereum is the second-largest cryptocurrency in the blockchain world since its birth it reached 3,000 USD and many believe that at end of this year Ethereum can reach 10,000 USD.

Positive Outlook

According to analysts, Ethereum has such a large potential which leads to it break the position at 10,000. If you look at the count of addresses you will find that Ethereum reaches 110 million address in which 620,000 are currently active, and an average of 1 million transactions performed on daily basis at Ethereum network, the Defi project make Ethereum unique in the crypto world and upgrade of EIP-1559 will make the Ethereum a deflationary asset.

Strong Position

However, Ethereum is far behind the superstar Bitcoin, and no doubt that Bitcoin is the leader, but recent market news reveal that Bitcoin gradually losing its position, it is also obvious that Ethereum needs more time to beat Bitcoin, but you can't imagine that 200,000 Bitcoin worth of $11 billion appeared on Ethereum network, this proves the Ethereum become an economic hub in encrypted assets world.

Ethereum VS Bitcoin

Due to the scarcity of Bitcoin, it embodies itself as the tool to store the value just like Gold but unable to prove itself as a wide-scale payment tool even though Bitcoin expanded widely in the field of payment, if you look closely at the current Bitcoin position it is observed that however, Bitcoin try to recover its previous value but instead of Bitcoin, recently Ethereum actively reach its new position. Analysts believe that is because of Ethereum's wide accepted ecology, smart contracts, and DApp that will empower the Ethereum blockchain.

Defi & NFT

Defi and NFT both are two technological wings that bring additional values to the Ethereum blockchain, the profitability of Ethereum smart contracts, and the financial derivatives enable Ethereum blockchain to absorb any financial opportunity that exists on the traditional financial landscape.

Market Value

The current market value of Ethereum is $463billion which is more than any other bank except the JP Morgan chase, if you look at the chart you will find that after Bitcoin and J P Morgan Chase, Ethereum is standing in the third position.

It is also reported that on the Ethereum network there is a continuous surge in activities related to financial institutions, according to Coin Desk, the European Investment Bank announced the issuance of two-year digital bonds worth US$121 million on Ethereum blockchain with the help of Goldman Sachs.

EIP-1559 Upgrade

This upgrade has been officially included in the London Fork upgrade and expected to incorporate in July of this year, this upgrade will increase the price of Ethereum once that upgrade fully installed, EIP-1559 will be the paradigm shift in terms of packaging of transactions into blocks after this upgrade it is certain that Ethereum will be benefited with the price increase.

This integration will increase network miner fees, currently, miners use the model of First Price Auctions model, which means the higher the miner fees, the easier the mining process especially in respect of packaging and confirming the transactions, due to network worldwide popularity, the Ethereum network faces huge demand for mining, and it is seen on the network that many pay the excessively high miners’ fees, this upgrade is similar to Bitcoin’s Proof of Work (PoW) difficulty adjustment mechanism when the rate of mining block is no more than 10, Bitcoin mining system automatically decreases the difficulty adjustment.

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