Ethereum had an impressive 2020. While ETH 2.0 faced a little delay by the start of the year, the beacon chain underwent a successful launch as the year went by. Its staking module gathered a lot of interest, with around $1.54B Ether staked during press time.
However, it seems that Ethereum’s on-chain metrics are making waves, as well.
Glassnode shows that 90% of Ethereum’s addresses are now in profit, a figure that was witnessed way back in January 2018. Remarkably, only 3.2% of the addresses were in profit back in March 2020; this finding supports the improvement in the past nine months. But in total contrast to what has been the situation in January 2018, a lot has changed for the world’s biggest altcoin, with Ethereum re-visiting $700 for the 2nd time around.
Consistent improvement and gains It hasn’t been a period full of flash hikes and abrupt crashes for Ether in 2020. The world’s biggest altcoin moved up the ladder in an intermittent fashion and led the altcoin rally back in mid-July.
Being one of the most distributed assets in multiple platforms didn’t hurt its credentials either. But the development of its intrinsic value is the main event of 2020. Ether is no longer considered another asset is competing with Bitcoin and moving forward; it may not even cater to the same user base.
In different arguments for Bitcoin, its characteristics as a hedge or a store-of-value have higher credibility. In contrast, Ethereum often has veered in the direction of transactional efficiency with PoS. As an improvement and evolution of blockchain, another class of investors might be taking place in 2021.
CME Pulling the trigger? Bitcoin received numerous respect from the institutional market in 2020, with many accredited investors openly supporting BTC. Major firms around the world have started to accumulate BTC at a faster rate. Fast forward to 2021, and it might not be eccentric to suggest that the same interest may flood in Ethereum’s direction as well.
CME recently announced its plan to launch Ethereum Futures in February 2021. The exchange did not come to this decision without recognizing the potential in Ether.
While CME’s ETH Futures launch may not have an immediate impact on Ethereum, investors will note that ETH is more than 50% away from its past all-time high. Under the current market structure, Ethereum might provide risk/reward returns concerning historical highs and recent valuation.
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