{"id":172583,"date":"2021-02-06T18:47:00","date_gmt":"2021-02-06T15:47:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ether-is-flying-to-the-moon-heres-whats-fueling-the-eth-rocket\/"},"modified":"2021-02-06T18:47:00","modified_gmt":"2021-02-06T15:47:00","slug":"ether-is-flying-to-the-moon-heres-whats-fueling-the-eth-rocket","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ether-is-flying-to-the-moon-heres-whats-fueling-the-eth-rocket\/","title":{"rendered":"# Ether is flying to the moon? Here\u2019s what\u2019s fueling the ETH rocket"},"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-6a35d81167a72\" 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-6a35d81167a72\" 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\/ether-is-flying-to-the-moon-heres-whats-fueling-the-eth-rocket\/#Institutional_engagement\" >Institutional engagement<\/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\/ether-is-flying-to-the-moon-heres-whats-fueling-the-eth-rocket\/#Activity_on_Ethereum_DeFi_and_NFTs\" >Activity on Ethereum, DeFi and NFTs<\/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\/ether-is-flying-to-the-moon-heres-whats-fueling-the-eth-rocket\/#Competition_falling_behind\" >Competition falling behind?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Ether is flying to the moon? Here\u2019s what\u2019s fueling the ETH rocket <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Ether hit its all-time high again on Feb. 2, reaching the psychological mark of $1,500. Since then, its price has remained above this level and is currently sitting at around the $1,700 mark. Along with Bitcoin (BTC) and other cryptocurrencies, Ether (ETH) has seen outstanding price action since the start of 2021, having surged by 10.46% in a month.\u00a0<\/p>\n<p>While Bitcoin has also been seeing positive price action, it is shy of its previous all-time high of $41,941 reached on Jan. 8. Ether volumes have been on the rise. According to market data provider CryptoCompare, spot volumes reached their all-time high on Jan. 11, with volumes for the month being up by 320% from December 2020. <\/p>\n<p>Alongside increasing volumes, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cryptoquant.com\/overview\/full\/278?window=day\">data<\/a> from analytics firm CryptoQuant shows that the amount of Ether held on centralized exchanges has been declining to new lows, signaling increased buying pressure for ETH. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-02\/7c1ad8bb-7fc5-4100-a96e-5de11cb25711.png\"><\/figure>\n<p>Exchange outflows have also been increasing, which shows that buyers are interested in holding the asset rather than selling. Ki Young Ju, CEO of crypto data analytics firm CryptoQuant, told Cointelegraph: \u201cSince ETH reserves on all exchanges keep decreasing, I think the bull run will continue until it stops decreasing.\u201d<\/p>\n<p>Derivatives data also shows a bullish outlook for Ether, as <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/laevitas1\/status\/1356515276125257728\">according<\/a> to data analytics platform Laevitas, 80% of options volume on Deribit was dominated by calls (buy orders) on Feb. 2 when ETH reached its all-time high of around $1,500 \u2014 a bullish sign. <\/p>\n<p>According to Ben Zhou, CEO of Bybit exchange, Ether is catching up to Bitcoin in terms of demand and trading volume. He told Cointelegraph: \u201cIn the past couple of days the volumes of our ETH\/USD and ETH\/USDT pairs are not too far off from their BTC counterparts.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Institutional_engagement\"><\/span>Institutional engagement <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ether has been doing well both in the retail and institutional worlds, with demand for Ether increasing rapidly. While Grayscale, the world\u2019s biggest cryptocurrency asset manager, previously closed off several altcoin trusts, including the Ethereum Trust, investments resumed in early January, and it currently has <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Grayscale\/status\/1356719277856993286\">$4.25 billion worth of ETH<\/a> under its management at the time of writing, an increase of over 240% in the last three months. Jonathan Hobbs, the author of <em>The Crypto Portfolio<\/em> and a former digital asset fund manager, told Cointelegraph:<\/p>\n<blockquote><p>\u201cWe have seen a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> rotation in the crypto market into altcoins, while Bitcoin has been in a range. Ethereum is a proxy for the altcoin market that institutions can access through Grayscale\u2019s trust. With a market cap of nearly $200 billion, Ethereum is large enough for institutions to start taking seriously.\u201d <\/p><\/blockquote>\n<p>As interest for Ether continues to increase, so do the options for institutional engagement. On Feb. 8, Ether futures will be added to the Chicago Mercantile Exchange alongside Bitcoin. Hobbs added: \u201cCME futures trading will provide a further stamp of <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>roval for institutions. I would expect Ethereum to rally leading up to the event on the eighth of February. But I would be cautious of a pullback around or just after the launch.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Activity_on_Ethereum_DeFi_and_NFTs\"><\/span>Activity on Ethereum, DeFi and NFTs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The growing demand from both the retail and institutional crowds can be attributed to the growing activity and hype surrounding the decentralized finance sector. The total value locked in DeFi has also been increasing and is currently sitting at almost $35 billion, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defipulse.com\/\">according<\/a> to DeFi Pulse, an all-time high.<\/p>\n<p>The trading volume on decentralized exchanges has also been increasing steadily. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defiprime.com\/dex-volume\">According<\/a> to analytics tool DeFi prime, DEXs had over $55 billion worth of trading volume during January, a record-breaking month. Several DeFi tokens have also reached their all-time highs in recent times, including Aave, Uniswap and SushiSwap.<\/p>\n<p>While nonfungible tokens still lag behind in terms of activity and volumes, the sector has been heating up, especially in the gaming and art worlds. Just recently, Hashmasks, an NFT-based project, was able to sell over 7,600 ETH (roughly $10 million at the time) worth of NFT tokens representing collectible cards.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Competition_falling_behind\"><\/span>Competition falling behind?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As Ether continues to rally, other altcoins have also seen significant price action. However, many are still far from their old all-time highs, including Ether competitors, such as EOS. These layer-one blockchain projects have been losing ground to Ethereum, with a recent report by venture capital firm Outlier Ventures showing that many Ethereum competitors are seeing a decline in development activity. Ilya Abugov, advisor at DApp statistics aggregator DAppRadar, told Cointelegraph:<\/p>\n<blockquote><p>\u201cAs the Ethereum ecosystem grows, it becomes more attractive to integrate with it. The composability factor increases with the growing number of DApps, and the amount of capital and the number of active developers make it very appealing to other teams. You can even see it in the number of different wrapped tokens coming to Ethereum.\u201d<\/p><\/blockquote>\n<p>Furthermore, as development on Ethereum 2.0 continues to bear fruit along with other layer-two solutions, which are currently available, Ethereum remains a viable candidate for a long-term investment. These solutions will allow it to scale as a network and blockchain, especially with the introduction of staking, which will replace the old proof-of-work model. <\/p>\n<p>Staking will allow Ether holders to earn interest on the ETH they stake. At the time of writing, more than 2.9 million ETH, worth over $.4.7 billion, have been <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.stakingrewards.com\/earn\/ethereum-2-0\">staked<\/a> on the Ethereum Beacon Chain, with APY staking rewards reaching double-digit percentages. While PoW miners have had a record-breaking month in terms of revenue, earning over $800 million in mined coins globally, it seems that staking is becoming increasingly popular. <\/p>\n<p>With more coins having being locked away for staking, the available supply of ETH is significantly reduced, which may have a positive impact on the price. According to Zhou, a combination of all these factors spell a bright future for Ethereum in the short and long term: \u201cThe growing value staked on Eth2 and locked in DeFi, the increasing user activity, and the resumption of Greyscale Ethereum Trust have compounded to lift Ether to ever new heights. And unlike the 2017\u201318 bull run, this time, Ether is a lot more sure-footed.\u201d<\/p>\n<p>Some note that when Ether pumps, so do other altcoins. If so, then Ether\u2019s bull rally may have a network effect throughout all of the cryptosphere, especially for projects hosted on its blockchain. Nevertheless, Abugov expects some coins to fall behind: \u201cBlockchains that have not been able to foster an ecosystem will find it hard to maintain developer communities simply because the upside for those teams will be much lower on those smaller networks.\u201d<\/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\/ether-is-flying-to-the-moon-here-s-what-s-fueling-the-eth-rocket\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Ether is flying to the moon? Here\u2019s what\u2019s fueling the ETH rocket &#8221; Ether hit its all-time high again on Feb. 2, reaching the psychological mark of $1,500. Since then, its price has remained above this level and is currently sitting at around the $1,700 mark. Along with Bitcoin (BTC) and other cryptocurrencies, Ether&#8230;<\/p>\n","protected":false},"author":1,"featured_media":172584,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDIvNzk0ZjIxN2YtNjA3NS00OTY1LTliYWEtOTI2ODRjY2U2YjQ1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74891,74876],"class_list":["post-172583","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-ethereum","tag-proof-of-stake"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/172583","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=172583"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/172583\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/172584"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=172583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=172583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=172583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}