{"id":162054,"date":"2021-01-24T22:37:00","date_gmt":"2021-01-24T19:37:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-will-become-the-main-asset-for-investors-in-2021\/"},"modified":"2021-01-24T22:37:00","modified_gmt":"2021-01-24T19:37:00","slug":"ethereum-will-become-the-main-asset-for-investors-in-2021","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-will-become-the-main-asset-for-investors-in-2021\/","title":{"rendered":"# Ethereum will become the main asset for investors in 2021"},"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-6a3d428b4c6e9\" 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-6a3d428b4c6e9\" 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\/ethereum-will-become-the-main-asset-for-investors-in-2021\/#Demand_among_developers\" >Demand among developers<\/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\/ethereum-will-become-the-main-asset-for-investors-in-2021\/#Growing_transaction_volume\" >Growing transaction volume<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-will-become-the-main-asset-for-investors-in-2021\/#Development_of_the_DeFi_sector\" >Development of the DeFi sector<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Ethereum will become the main asset for investors in 2021 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>During the second half of 2020, we saw a growing interest in cryptocurrencies from institutional investors and big capital. However, all the attention of the whales, as well as all the attention of the public, was fixed on Bitcoin (BTC). Today, we will look at why Ether (ETH) is a more attractive asset and why this cryptocurrency should become the \u201cfirst cryptocurrency\u201d for every investor.<\/p>\n<p>Let&#8217;s start with the numbers: ETH\u2019s growth since its March 2020 low after the coronavirus-induced market crash has been 1,200%, whereas BTC has only grown around 700%. ETH\u2019s growth since its March 2020 low after the coronavirus-induced market crash has been 1,200%, whereas BTC has only grown around 700%. Of course, against the backdrop of record highs for Bitcoin, whose price reached $ 40,000, the rise of Ether to $1,400 does not seem so impressive. Moreover, the market capitalization of ETH is five times less than the volume of the BTC market. But what is more important for an investor: nice numbers and records of an asset from a portfolio or high income?<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/d0f10cd0-f722-429e-bfa1-f4d31ba39738.png\"><\/figure>\n<p>There are very strong reasons to believe that Ether will continue to rise in price in 2021 and bring more profit to investors than the \u201cmost famous cryptocurrency,\u201d Bitcoin. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>ETH price sets new all-time high, gains financial momentum to go further<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Demand_among_developers\"><\/span>Demand among developers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ethereum is the number-one platform for building blockchain projects and launching decentralized <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>lications. The chart below displays the number of unique ERC-20 tokens traded during the first years since the launch of the Ethereum network. And despite the fact that the rate of expansion of the market for blockchain startups has slowed down since the initial coin offering bubble burst in 2018, their total number is still growing.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/e48a582b-59f5-4654-833f-ae95fdabd179.png\"><\/figure>\n<p>And even despite the fact that Ethereum has serious competitors \u2014 such as Tron, Polkadot, Cardano, Cosmos and Tezos \u2014 Vitalik Buterin&#8217;s cryptocurrency platform continues to be a leader in this direction.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Growing_transaction_volume\"><\/span>Growing transaction volume<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>During 2020, more than $1 trillion worth of transactions were recorded on the Ethereum blockchain. These figures exceed the transaction volume of payments giants like PayPal, which is used by over 350 million users and has with average volumes that do not <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly exceed $200 billion per quarter.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/128c7d50-a347-4ed8-a3a2-64f050cc6728.png\"><\/figure>\n<p>Also, keep in mind that each transaction generates network fees paid in ETH. And since the network&#8217;s growth rates are still high, we can confidently expect the continuation of the \u201cbullish\u201d trend of ETH. In any case, interest in cryptocurrency is increasing, as is the number of active wallets, the number of transactions on the network and the average transaction size.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Development_of_the_DeFi_sector\"><\/span>Development of the DeFi sector<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite Bitcoin&#8217;s leadership in the cryptocurrency market, Ethereum remains the leader of the young decentralized finance industry. Highly popular in the summer of 2020, DeFi lending and staking projects continue to grow, attracting new investments.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/b2d42224-c9d2-49a4-bbaf-34eeb252ee49.png\"><\/figure>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Was 2020 a \u2018DeFi year,\u2019 and what is expected from the sector in 2021? Experts answer<\/em><\/strong><\/p>\n<p>The total value locked in decentralized finance since the beginning of 2020 has grown nearly 3,300%, from $687 million to $23.2 billion. And it is Ethereum that is the main platform for the creation and launch of most new DeFi projects and stablecoins.<\/p>\n<p>The emission of stablecoins is constantly growing, as digital assets backed by the value of less-volatile fiat currencies are a very convenient tool for quick settlements between users, for forming trading pairs on crypto exchanges and for saving capital from high volatility in your crypto wallet.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/1c681812-bd88-4558-8697-36c54206d50e.png\"><\/figure>\n<p>Separately, we should talk about the interest of institutional investors in decentralized finance. While the chaos in the DeFi market nearly eroded institutional confidence in the potential of blockchain in the financial sector in the summer of 2020, public companies continue to show interest in the new asset type.<\/p>\n<p>In August 2020, Archax and Algorand revealed plans to develop tools for introducing DeFi among institutions. And in the fall of 2020, it became <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.prnewswire.com\/news-releases\/zk-international-subsidiary-xsigma-corporation-announces-its-etf-like-decentralized-fund-and-platform-301210748.html\">known<\/a> that xSigma, a subsidiary of the Nasdaq-traded ZK International, is working on the development of DeFi services and is preparing to launch a decentralized exchange for trading stablecoins.<\/p>\n<p>We all remember what big investors&#8217; attention to Bitcoin led to last year, right? Now, it looks like other areas of the cryptocurrency industry are in for the same, and some of them are directly related to Ethereum. And the main advantage of Ethereum lies in the versatility of its <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> and its growing community.<\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Nick Bel<\/strong> is a cryptocurrency enthusiast and tech writer based in London. He is passionate about finance and emerging technologies, such as blockchain, cryptocurrency and artificial intelligence.<\/div>\n<\/div>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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However, all the attention of the whales, as well as all the attention of the public, was fixed on Bitcoin (BTC). Today, we will&#8230;<\/p>\n","protected":false},"author":1,"featured_media":162055,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDEvZmM2M2NkYTktNzY3Zi00NzE5LTllNTAtMTU1Mzk0YjBjZjgwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,74863,74868,74891,75493,73711,4965],"class_list":["post-162054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-cryptocurrencies","tag-defi","tag-ethereum","tag-stablecoin","tag-investments","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/162054","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=162054"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/162054\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/162055"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=162054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=162054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=162054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}