Bitcoin makes a new all-time high for 2020 this week as Ether and decentralized finance (DeFi) continue to make headlines and break waves with the fifth anniversary of Ethereum
The bulls are back. Maybe not for sure, and maybe not for long, but when you see a new high for Bitcoin price for the year, in the same year that has seen the coronavirus pandemic, massive job cuts and economic downturn that could last for years to come, then you see this as a massive sign of positive sentiment for the crypto and blockchain industry.
As of time of writing, Bitcoin has not only broken the ATH but continues to make new surges, trading on Friday as US markets wake up to roughly USD 11,467 ( CoinDesk ), while Ethereum continues its wild, wild powering up, from USD 278 a week ago to a 2020 high so far of USD 348 right now.
Perhaps a fitting time to be celebrating the fifth birthday of Ethereum, which is today, but we shouldn’t just dismiss today’s surge as positive birthday sentiment.
The price of Ethereum’s Ether token has been going on a bullish rally this entire month, and since 1 July 2020 has already climbed more than 50% in price.
The world’s leading smart contract and decentralized application (Dapp) protocol has had a lot of good news this year as well. Initially, the boom in decentralized finance (DeFi), which we have written about before, looked like it could actually be a burden to the ETH network, since high demand has led to a spike in average gas fees paid in Ether. According to some sources, DeFi along with gambling dapps have overburdened the network, with smart contract fees reaching as much as USD 5 per execution some point last month.
The last time this happened, during the Cryptokitties fiasco that simply broke ETH’s back, people eventually left ETH for other faster and cheaper platforms — but this time around, Ethereum has managed not only to keep its users but see them pushing prices even higher.
But the mystery might be more logical than we think. IT could simply be that people are finally gaiing more and more confidence in Ethereum’s long delayed plans to upgrade to the Proof-of-Stake (POS) platform or ETH 2.0.
With more news confirming a testnet coming next month, on top of other milestones slightly ahead of schedule the market anticipation of the market towards ETH 2.0 has been reaching fever pitch.
And, DeFi, despite it being warned by some as a possible bubble, has only proven so far to be more stable and secure than ever, drawing in more and more investment and interest from mainstream retial and institutional players. The fact that DeFi, although being 2020’s star and baby of the media, while valued at USD 3.94 billion, is still only 1.5% of crypto capitalization , does also mean that if it is a bubble, it is far from being close to popping! And perhaps, even seeing this means there is plenty of room to accelerate in growth.
With the latest phenomenon of “yield farming” only coming out in June thanks to Compound, we will be seeing more and more ETH users signing up at the best platform to get the most incentives. Some of the biggest players like Aave, Balancer, and Curve Finance halready have hundreds of millions of dollars worth of crypto locked in.
According to Etherscan, users have never been guzzling gas this fast, with now more than 76 million gas used each day, mostly powering DeFi apps.
All of this sentiment will be ushering in a bull run that will be unique in every way, according to famous Bitcoin billionaires the Winklevoss twins, who say that the next Bitcoin bullrun will be “ dramatically different “.
The next #Bitcoin bull run will be dramatically different. Today, there’s exponentially more capital, human capital, infrastructure, and high-quality projects than in 2017. Not to mention the very real specter of inflation that all fiat regimes face going forward. Buckle up!
— Cameron Winklevoss (@winklevoss) July 29, 2020
Cameron, who founded cryptocurrency exchange Gemini, says that there are substantial differences in the current market compared to previous bull ones, with superior foundations pointing to an even stronger push up. He said on Twitter:
“The next Bitcoin bull run will be dramatically different. Today, there’s exponentially more capital, human capital, infrastructure, and high-quality projects than in 2017. Not to mention the very real specter of inflation that all fiat regimes face going forward. Buckle up!”
Meanwhile, we see one big metric that support this theory, showing that there is even more capital pouring in every day into the market. The first most obvious one is the market capitalization of Tether (USDT), which has now crossed the USD 10 billion mark.
Demand? For sure.
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The post Trending Bitcoin News and Market Sentiment, July 31st, 2020: Ethereum Turns 5 as ETH and DeFi Fly Together, Bitcoin New ATH appeared first on BitcoinNews.com .