In the last presidential election four years ago, the price of Ethereum was just $11. Now, after four years, ETH is valued at $352. In four years, ETH recorded a 3126% increase comparing to the US dollar.
An Ethereum researcher, Evan Van Ness, said:
Three significant facilitators hurled Ethereum for more than 30-fold in four years. The factors are as follows:
- The resurgence of decentralized finance (DeFi)
- Surging of the users’ activity
- The anticipation of ETH 2.0
By the time of mid-2020, the demand for Ethereum has been noticeably increased at an incredible pace. Most of the newfound demand for ETH has come from the DeFi market.
For users to transfer the tokens to stake or earn a yield on DeFi protocols, they have to spend gas. The term gas refers to the transaction fees on the Ethereum blockchain paid using ETH.
Amid the DeFi craze, gas expenses have risen to previously unseen levels. At some point, average gas costs increased to 600 to 1,000 GWEI, making the users spend $50 to $200 per transaction.
Because the users have to purchase ETH to pay for gas, it has essentially caused ETH to rise. Many users have also been gambling ETH to make supremacy tokens on newly-emerging DeFi protocols.
The convergence of the two factors has worsened the recovery of ETH from the March 13 crash.
Since March 13, the price of Ethereum increased from sub-$100 to above $355. At its peak, ETH almost reached $500, topping at $488.84.
Ethereum’s User Activity is Surging
Data showed that the user activity on the Ethereum had hit an all-time high. On September 17, the number of daily transactions on the Ethereum has reached 1.4 million, a new record high.
The surge of user activity came from the DeFi market; users have begun to utilize decentralized exchanges like Uniswap and other centralized platforms.
As of now, the daily volume of Uniswap has exceeded Coinbase Pro, doling out $426 million in trades on a single day.
The ETH 2.0 expectancy is constructing.
The Ethereum users expect ETH 2.0 to arrive soon for the ecosystem to need it more than ever in the past.
The high gas costs and the clogged blockchain network have caused the user experience in DeFi to degrade. For the first time, legitimate user activity has been overwhelming the blockchain to the point of not handling the capacity properly.
For the growth course of Ethereum, like a trend, is highly optimistic. In the previous bull cycles, price ETH soars, but there was a lackluster of fundamental factors and user demand to supplement it.
This time around, ETH’s price is rising in tandem with user activity and overall investor demand. Throughout the next four years, if backed with adequate developer activity and progress with ETH 2.0, the trajectory of Ethereum remains positive.
At this point, the price of ETH rose in tandem with the user activity and overall investor demand. In four years, if it was backed with sufficient developer activity and progress with ETH 2.0, the trajectory of Ethereum remaining positive.
Currently ranked #2, Ethereum is down to 1.92% in the past 24 hours. ETH now has a market cap of $40.1B with a 24-hour volume of $10.42B.