{"id":149224,"date":"2021-01-07T19:00:00","date_gmt":"2021-01-07T16:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-analysts-say-ethereum-may-replicate-bitcoins-2016-bull-run\/"},"modified":"2021-01-07T19:00:00","modified_gmt":"2021-01-07T16:00:00","slug":"3-reasons-analysts-say-ethereum-may-replicate-bitcoins-2016-bull-run","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-analysts-say-ethereum-may-replicate-bitcoins-2016-bull-run\/","title":{"rendered":"# 3 reasons analysts say Ethereum may replicate Bitcoin&#8217;s 2016 bull run"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a86857eafe\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a86857eafe\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-analysts-say-ethereum-may-replicate-bitcoins-2016-bull-run\/#Pal_Its_all_about_Metcalfes_law\" >Pal: It&#8217;s all about Metcalfe\u2019s law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-analysts-say-ethereum-may-replicate-bitcoins-2016-bull-run\/#What_happens_next_to_ETH\" >What happens next to ETH?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons analysts say Ethereum may replicate Bitcoin&#8217;s 2016 bull run  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Several prominent analysts say Ether (ETH) is on the cusp of a major bull run despite already gaining nearly 65% in 2021. Ethereum has seen explosive growth in decentralized finance and other areas, causing user activity on the blockchain to surge.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/a92b78b0-4865-4ca7-b87e-b0e9d30d137c.png\"><figcaption style=\"text-align: center;\"><em>Ether performance in 2021. Source: Digital Assets Data<\/em><\/figcaption><\/figure>\n<p>Raoul Pal, CEO of Real Vision Group, pinpointed the technical structure of ETH&#8217;s price. He emphasized that the structure is strikingly similar to Bitcoin (BTC) in 2016, which means a prolonged bull rally could emerge.<\/p>\n<p>The combination of Metcalfe\u2019s law, a strong technical structure and rising user activity could fuel ETH\u2019s momentum throughout the ongoing rally.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/a6ffcc74-7095-4830-a05b-48ae0d797b6b.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>ETH\/USDT daily candle price chart (Binance). Source: TradingView.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Pal_Its_all_about_Metcalfes_law\"><\/span>Pal: It&#8217;s all about Metcalfe\u2019s law<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to Pal, the price of ETH is the same as BTC in 2017, with the same market cap. If ETH follows the same trajectory as Bitcoin, it could see a significant rally in the long term.<\/p>\n<p>Whether this will h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>en or not remains uncertain, but Pal emphasized the strong similarity between the two. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/RaoulGMI\/status\/1347033584234876931\">said<\/a>:<\/p>\n<blockquote><p>\u201cAgain, if you didn\u2019t read the charts, ETH is the EXACT same price as BTC in 2017. TheY have\/had EXACT same market cap too. They look EXACTLY the same in price structure&#8230; BTC from 2016 versus ETH from 2020. It\u2019s bizarre and it\u2019s all Metcalfe\u2019s Law.\u201d<\/p><\/blockquote>\n<p>Pal explained that the similarity likely comes from Metcalfe\u2019s law, which states that the \u201ceffect of a telecommunications network is proportional to the square of the number of connected users of the system.\u201d<\/p>\n<p>Like Bitcoin in its early days, Ethereum has seen an exponential growth of active users, primarily due to DeFi.<\/p>\n<p>In January, for the first time in history, the total value locked in DeFi reached $20 billion. This means that there is $20 billion worth of capital deployed into various DeFi protocols.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/3ab60a07-53bd-44f0-a0db-45abcf925719.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Total value locked in DeFi. Source: Defipulse.com<\/em><\/figcaption><\/figure>\n<p>The rapid growth of the Ethereum ecosystem is mostly attributable to DeFi. In mid-2020, the total value locked in DeFi was hovering below $1 billion. The figure has increased 20-fold since, with DeFi continuing to attract more users and capital.<\/p>\n<p>A pseudonymous analyst known as \u201cDCinvestor\u201d echoed the sentiment of Pal. He explained that no one in early 2017 thought BTC would achieve $20,000. He <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/RaoulGMI\/status\/1347033584234876931\">said<\/a>:<\/p>\n<blockquote><p>\u201cNo one thought BTC could get to $20K in early 2017, either. Of course, the market doesn&#8217;t care what people think. It&#8217;s all supply, demand, and reflexivity. From all indications, everything is getting scaled up this cycle. We had very few funds \/ billionaires involved in &#8217;17.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"What_happens_next_to_ETH\"><\/span>What happens next to ETH?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the foreseeable future, the seamless transition to Eth2 is important to ensure that the DeFi ecosystem continues to prosper.<\/p>\n<p>In recent weeks, the Ethereum blockchain network has become increasingly clogged due to the rising use of DeFi and accompanying transaction fees. <\/p>\n<p>As Cointelegraph previously reported, ETH has already become a top 100 asset by market capitalization. ETH is still around 20% away from reaching its record high, and as such, analysts say it has room for additional upside during this bull cycle.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-reasons-analysts-say-ethereum-may-replicate-bitcoin-s-2016-bull-run\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons analysts say Ethereum may replicate Bitcoin&#8217;s 2016 bull run &#8221; Several prominent analysts say Ether (ETH) is on the cusp of a major bull run despite already gaining nearly 65% in 2021. Ethereum has seen explosive growth in decentralized finance and other areas, causing user activity on the blockchain to surge. Ether&#8230;<\/p>\n","protected":false},"author":1,"featured_media":149225,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/473cad2e-46c8-49e5-aecb-8c61ffbb6134.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74937,82402,74891,73785],"class_list":["post-149224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin-price","tag-ether-price","tag-ethereum","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/149224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=149224"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/149224\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/149225"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=149224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=149224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=149224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}