Ethereum (ETH), the second-largest and most popular virtual currency in the market has already doubled in price since the beginning of the year. The main question is whether the cryptocurrency will be able to repeat the performance once again throughout 2020. There are some things that let us think there is a lot going on behind Ethereum’s project.
Ethereum Price 2020
We wrote at UseTheBitcoin that there were many factors that could help Ethereum surge in the coming years. The main question is which new things will help Ethereum move forward in the market once again.
One of the things that could push Ethereum to new highs is related to the premium many traders are paying to have exposure to this virtual currency. Specifically, large investors are paying a 220% premium in order to have access to Ethereum.
This shows that the interest from accredited investors and institutions continues to grow. Not only Bitcoin (BTC) is calling the attention of traders but other digital assets are also doing so. One of them is Ethereum, considering this is the second most valuable virtual currency in the world.
Traders entering the market could have a large influence on the price of this cryptocurrency. If demands continue to grow and the bull market keeps for several months, Ethereum may certainly double in price.
Expanding Decentralized Finance
One of the main things that are helping the market to move forward is related to decentralized finance. Decentralized Finance, also known as DeFi is pushing the Ethereum ecosystem to the next level.
There are several projects that are gathering and attracting several funds to the ecosystem and this could have massive implications for Ethereum. The second-largest blockchain network in the world is known for providing smart contracts to the market. This is now evolving towards DeFi, which is becoming an industry itself in the crypto space.
As reported by DeFi Pulse, in early February there were more than 3.1 million ETH locked in a wide range of Decentralized Finance applications with Maker (MKR) being the leader in the market with a 61.6% dominance.
Other companies and projects such as InstaDapp, Compound and Uniswap are also expanding and attracting a larger amount of funds.
Ethereum has already doubled in price during 2020. It moved from around $125 to over $260. Now it has a price per coin of close to $270. Would ETH be able to surge and surpass $540 in the current year?