Ethereum’s hype climbs with the boom of Bitcoin and DeFi

The price of Ethereum is undervalued, still 72% lower than its record level.

Vitalik Buterin argues that Ethereum is a complete financial landscape, not just a store of value.

The launch of ETH 2.0 is on the horizon and could propel its price to new heights.

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Last week, Crypto Bank received a lot of attention from the crypto industry. It has indeed reached a new record in 2020 thanks to the rise of PayPal, which now accepts payments in encrypted form. Ethereum has taken a small wave of this hype, but analysts believe it still has plenty of room to grow.

Ethereum has only managed to gain a little more than 4% since the opening of the week at 380$. It briefly hit the $400 mark on October 21, before a considerable pullback. Bitcoin, on the other hand, rose by more than $1,200 this week, breaking the $13,200 level to reach a new record in 2020.

Since the beginning of the year, however, ETH has surpassed the BTC by two. This steady growth is expected to continue next year as technical, fundamental and chain indicators strengthen.

In addition, Ethereum is still 72% below its peak, while Bitcoin is only 35% of its own record.

  • ETH Options BTC Surge
  • Ethereum gains momentum

Several factors that emerged in 2020 contribute to cement the idea that Ethereum is a complete financial ecosystem in itself, and not just a value reserve or a hedge against failing fiduciary currencies.

Ethereum’s founder, Vitalik Buterin, recently suggested that the asset should no longer be called „altcoin,“ as it simply does much more today than it did five years ago :

In simple language, I hope everyone can understand:

In 2020, to continue to refer to ethereum as an „alt“ is as outdated as referring to a lambo as a „horse-less carriage“.

According to DeFi Pulse, there are currently a record 9 million ETH locked in DeFi protocols. This represents 8% of the total offer, and a growth of more than 200% since the beginning of the year:
Eth on Defi

ETH locked in the DeFi – DeFi Pulse

ETH is used and invested to generate more ETH and earn rewards in other crypto assets. Most of the bitcoins are kept in cold storage, but the amount of tokenized BTCs on Ethereum has also reached record amounts this year.

Institutional investment funds such as Grayscale Investments also filled up on ETH, which were largely considered undervalued. Industry observers have been watching this „perfect tornado“ that could push Ethereum’s prices much higher before the end of 2020.