The 3 main drivers of growth for the Ethereum market are related to its utility and plans to launch an institutional product based on ETH, which was recently announced
Ethereum 2.0 phase 0 was launched on December 1 after potential validators have collected enough ETH. The initial target of 524,288 ETH for blocking in the smart contract for staking has been met and users continue to send their Ether.
According to Dune Analytics, $ 1.2 billion has been blocked in the contract so far.
DeFi based on Ethereum
⚠️ Another reason dates back to 2020: decentralized finance or simply DeFi.
Numerous ETH-based DeFi applications have had great success this year, such as:
However, some of these projects, such as YAM, have also failed due to the high investor interest in them.
In addition, several DeFi apps fell victim to hackers this year, losing large amounts of ETH from their users.
⚠️ Another likely reason for the rise in ETH is the ongoing rally in BTC.
Over the weekend, the largest cryptocurrency managed to climb from below $ 25K to show a short-term rise above $ 28K, and then retrace to a level above $ 26K 🤑📈
In addition, the third major currency, XRP, has come under fire over the past week after the US regulator, the SEC, filed a lawsuit against Ripple, accusing it of selling XRP as an unlisted security for the past eight years and making more than a billion dollars from those sales. US dollars.
Ripple co-founder Chris Larsen and CEO Brad Garlinghouse have also been indicted by the regulator.
These two factors also likely played a role in ETH's rise.