Strategists at Fundstrat Global Advisors LLC believe that Ethereum price is on the verge of a phenomenal bullish trend that will push the second-largest cryptocurrency by capitalization to $10,500.
January 21, 2021 | AtoZ Markets – Ethereum has several reasons for growth at once. Fundamental factors including the move to ETH 2.0 and the boom in the Decentralized Finance ( DeFi ) industry are creating a favorable backdrop and attracting new investors.
DeFi grows and pulls Ethereum price with it
The development of the decentralized finance (DeFi) ecosystem will push prices skyrocketing, according to David Greder, director of digital asset strategy at Fundstrat Global Advisors, writes Bloomberg.
DeFi applications create endless opportunities for new technologies in the real world. They combine the advantages of traditional finance and digital assets, and most of them are based on the Ethereum network.
“This is the best cryptocurrency asset in terms of risk-reward ratio. After cloud technologies, settlements on the blockchain will come,” Grinder said.
Grinder’s bullish outlook is backed up by the facts: the DeFi market has once again hit all-time highs. According to analytical service DeFi Pulse, the excitement in this segment has not abated since the beginning of the year.
Since the beginning of January, the decentralized finance market has grown by 64%. At the time of writing, the total value of funds locked in DeFi protocols (TVL) exceeds $24 billion.
A solid foundation
The second-largest cryptocurrency has tested all-time highs and has not lost its bullish potential. Hence, it is possible that ETH will update record levels before the correction begins.
Several favorable fundamentals are fueling the bullish sentiment in the market and pushing ETH to new highs.
One of them is the growing support for the new version of the ETH 2.0 network. The volume of coins locked in the Beacon Chain protocol is growing at a record pace. Now there are already more than 2% of all ETH in circulation.
Parabolic growth on the Ethereum network will ultimately lead to a supply shock. It’s just a matter of time. Once people understand this, the ETH rate will rush into space.
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