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Why Isn’t Anyone Speculating on Ethereum Classic (Why I’m Optimistic about Ethereum)

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Why Isn\’t Anyone Speculating on Ethereum Classic? Editor\’s Note: This article is

Why Isnt Anyone Speculating on Ethereum Classic (Why Im Optimistic about Ethereum)

Why Isn’t Anyone Speculating on Ethereum Classic? Editor’s Note: This article is from Caiyun Blockchain (ID: cybtc_com) and has been authorized for reproduction by the Odaily Planet Daily.

Under the leadership of the Ethereum Classic development team, several important events have received much attention: 1. Why isn’t anyone speculating on Ethereum Classic? 2. Why isn’t there a top exchange for trading? 3. Why didn’t any projects support ETH2 from the beginning? 4. Why have “miners” never purchased “Ethereum Classic”? On May 28, Coindesk reported that due to the high gas fees of Ethereum Classic and the need for a large number of maintenance and validation nodes to continue working after the mainnet upgrade to PoS, many people believe that Ethereum Classic is a very secure and cost-effective asset, so people are not interested in this platform. Although some people say it is cheap but expensive, this has not affected the enthusiasm and activity of other projects in the Ethereum community. (Image Source: coinmarketcap) 6. This year, rumors about Bitcoin halving have been increasing, and the Ethereum network has gone through three major stages: 1. In July 2018, the Ethereum Foundation announced the launch of Ethereum 2.0 beacon chain and plans to start this new system in two batches. According to official sources, this will make Ethereum the world’s first fully decentralized network. Ethereum founder Vitalik Buterin has repeatedly stated that he wants to bring some changes to Bitcoin, such as using proof of stake consensus mechanism to achieve lower threshold transfer functions, etc. 2. Since 2019, the development speed of Ethereum Classic has accelerated, and more than 10 new DeFi applications have been added in the past year, including Aave, Compound, etc. In addition, with the launch of ETH2.0 merging this summer, ETH1.0 has also shown significant growth, and the ecological construction of ETH2.0 has also continued to accelerate.

Currently, the most popular applications on Ethereum Classic are NFT games, followed by stablecoin DApps, such as the stablecoin USDC. Among them, Tron’s stablecoin Dai is one of the most commonly used stablecoins. At the end of 2019, the circulation of Tron-based USDC once exceeded 2 billion US dollars. However, compared with TRX, the stable token DPT in the Tron network is less valuable. In contrast, Binance’s DApp is still one of the three major stablecoins on Ethereum, accounting for less than 1% of the circulation. 3. The decline in market heat now puzzles many people because for most people, the cryptocurrency market bubble has not yet arrived, and even Ethereum’s value is not as good as Bitcoin. So, why hasn’t any listed company participated in mining?

Why I’m Optimistic about Ethereum

In a recent interview, we talked about why we are optimistic about Ethereum. From a technical analysis and study, we can speculate that these two reasons are consistent: first, the upgrade of ETH2.0 will bring new decentralized applications. The second important factor is the issue of Ethereum’s own performance. Third, the price fluctuations of ETH have had a negative impact on the Ethereum network because the current blockchain platform cannot support users for any transactions or operations. Fourth, because Ethereum developers, investors, developers, and the ecosystem are very active, many people believe that ETH will replace Bitcoin as the world’s largest cryptocurrency in terms of market value.

If we carefully observe the development of the entire year 2018, we will find that the overall growth in 2020 mainly comes from Ethereum (ETH) and the DeFi field, which has surpassed BTC and become one of the world’s hottest applications. Therefore, let us take a look at the reasons why the price of Ethereum is so high.

1. New things brought by the upgrade of ETH2.0

Although Ethereum has the potential to solve many current problems, it is still in the early stages of development for some industries. According to data from DAppTotal, as of the end of September, the daily trading volume of Ethereum has exceeded 1.5 billion US dollars, most of which are ETH2.0 staking rewards, accounting for only a small part of the total. In addition, the number of ETH2.0 deposit contract addresses has reached a record high of nearly 400,000, and the average daily transaction volume is over $100,000, more than double the previous data.

2. Market demand for DeFi

Although we cannot be sure whether DeFi will increase with the growing popularity of Ethereum, Ethereum still has great advantages, especially its scalability, low fees, and scalability, etc.

3. The inflation rate of ETH may decrease in the next year, or even decrease. Unless there is a major adjustment, the inflation of Ethereum will not decrease. Ethereum is currently regarded as a store of value tool and is gradually gaining mainstream recognition. Another noteworthy thing is that in terms of DeFi, the amount of funds locked in Ethereum has reached US$1.4 billion this year, far higher than the level at the beginning of the year.

4. Smart contract functionality on Ethereum

In the past two years, we have seen the emergence of smart contract functionality, especially when Ethereum is used as financial infrastructure. For example, many smart contract functions based on the ERC20 standard have appeared on Ethereum.

5. Rise of DeFi

Although there are not enough assets being borrowed or used for collateral at present, I believe that more types of applications and scenarios will appear in the DeFi field, such as stablecoins and synthetic assets, and Ethereum is expected to be a part of the future.

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