Ethereum will become the main asset for investors in 2021
Ether’s potential far exceeds that of Bitcoin: the community is finally starting to realise the true value of ETH
In the second half of the 2020s, we saw growing interest in cryptocurrencies from institutional investors of Bitcoin Machine and big money: however, the public’s focus was on Bitcoin (BTC). Today we will see why Ether (ETH) is a more attractive asset and should become the „first cryptocurrency“ for every investor.
To start with, some numbers: the growth of ETH since its March 2020 low, after the coronavirus-induced market crash, has been 1,200%, while BTC has grown „only“ about 700%. Of course, compared to Bitcoin’s high above $40,000, Ether’s rally to $1,400 doesn’t seem that impressive. But what is more important to an investor: good numbers and records, or high profits?
There are very solid reasons to believe that Ether will continue to rise in price in 2021 and bring more profit to investors than the „most popular cryptocurrency“, Bitcoin.
Demand among developers
Ethereum is the number one platform for building blockchain projects and launching decentralised applications. The chart below shows the number of unique ERC-20 tokens exchanged during the first few years since the launch of the Ethereum network. Despite the fact that the rate of expansion of the blockchain startup market has slowed down since the bursting of the ICO bubble in 2018, their total number is still growing.
Moreover, despite the fact that Ethereum has several competitors, such as Tron, Polkadot, Cardano, Cosmos and Tezos, Vitalik Buterin’s platform continues to be a leader in this sector.
Transaction volume is growing
During 2020, more than $1 trillion worth of transactions were recorded on Ethereum’s blockchain. These figures even surpass those of payment giants such as PayPal, which is used by more than 350 million users; PayPal’s average volumes generally do not exceed $200 billion per quarter.
Also, keep in mind that each transaction generates network fees paid in ETH. And since network growth rates are still high, we can expect a continuation of ETH’s „bullish“ trend. In any case, interest in cryptocurrencies is increasing, as are the number of active wallets, the number of transactions on the network and the average transaction size.
The development of the DeFi sector
Despite Bitcoin’s leadership in the cryptocurrency market, Ethereum remains the leader of the nascent decentralised finance sector. Following a boom in popularity in the summer of 2020, DeFi lending and staking projects continue to grow, attracting new investment.