Over the past week, Ethereum, the largest altcoin by capitalization, has grown by 24%. At the time of preparation of the material, the cost of the coin on the Binance crypto exchange is $ 2.46. On April 15, the cryptocurrency updated its all-time high at $ 2.48. This happened against the backdrop of the release of the new Berlin hard fork, writes RBC Crypto.
The update contains four proposals for improving Ethereum, including changes to the algorithm for calculating the cost of transaction fees on the network (EIP-2565 and EIP-2929), as well as new types of transactions (EIP-2930 and EIP-2718). Berlin is one of the blockchain updates to Ethereum 2.0.
Ethereum is the most significant blockchain for the decentralized finance market, says Anton Bukov, co-founder of 1inch Network. In his opinion, the latest altcoin updates to historical highs are a natural recognition of the platform’s merits by the market.
Ethereum 2.0 and the success of DeFi
The growth of quotations of the largest altcoin in terms of capitalization is accompanied by the continuing influx of users into DeFi services, which are built mainly on the Ethereum blockchain, said Maxim Krupyshev, CEO of the Coinspaid crypto exchange. He believes that already in 2021, under the most optimistic scenario, a digital coin could rise in price to $ 10,000 if the blockchain upgrade to Ethereum 2.0 continues with the same success.
More realistic Krupyshev considers the growth of altcoin to $ 4-5 thousand this year. A similar opinion was expressed by TradingView analyst Nikolay Korinets. In his opinion, achieving $ 5,000 by a digital coin looks much more realistic than $ 10,000.
Correlation with Bitcoin
Ethereum follows the first cryptocurrency in the overall market dynamics, says Artem Deev, head of the analytical department at AMarkets. According to him, while Bitcoin is growing, Ethereum will also rise in price. But, when the first cryptocurrency enters the correction phase, this will also affect the altcoin, the analyst explained.
“After the correction, bitcoin within a year and a half may well reach the $ 100 thousand mark, so that Ethereum (including due to improvements in platform processes) is threatened with serious growth,” Deev added.
Maxim Krupyshev from Coinspaid is sure of the opposite. In his opinion, Ethereum does not have a clear link to the main cryptocurrency, so a digital coin can reach $ 10,000, regardless of the value of bitcoin.
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