Ethereum, for the first time this year, is trading above $225, scoring gains against Bitcoin (BTC), as bulls press the buy button, reversing losses posted in 2019.
At the time of going to press, Ethereum (ETH) bulls were in the driving seat.
In the weekly chart, not only is ETH up against BTC, but most importantly, from a technical point of view, prices are firm above the 20-week moving average.
Crypto is Bid: Novogratz
A further hint of strength is the increasing trade volumes and general investor sentiment, which is upbeat.
Confirming these are comments and Twitter posts from the space’s influencers. One of them, Mike Novogratz, a former ex-hedge fund manager, said crypto was a “bid.”
He wasn’t specific, but as far as events have panned out in the last couple of weeks, bulls are dominant:
“Crypto is bid. Period. Hearing more and more inquiry. Always dangerous but higher prices are making me more bullish. $eth over 200 for a couple of days will open a bigger move. BTC has 10k looming. Once that goes we are off to the races.”
Crytpo is bid. Period. Hearing more and more inquiry. Always dangerous but higher prices are making me more bullish. $eth over 200 for a couple of days will open a bigger move. $btc has 10k looming. Once that goes we are off to the races.
— Michael Novogratz (@novogratz) February 6, 2020
ETH Locked in DeFi Dapps exceeds $1 billion
But aside from prices, other key milestones have been reached. 2.5 years later, the amount of ETH locked in DeFi apps soared to over $1 billion.
DeFi crosses the $1 billion mark.
Thanks to Bitcoin's Lightning Network for contributing 8.5m to get it over the hump!
— evan.ethereum.eth (@evan_van_ness) February 7, 2020
This is an important mark revealing the shifts in finance and how software is gradually replacing intermediation.
Over time, proponents believe that ETH will morph into a reliable store of value, rivaling gold, but with far better features allowing flexibility.
Interoperability: More Bridges are built on Ethereum
On the interoperability front, a key area that should be addressed as more blockchains roll out, Ethereum looks to be a leader.
“Hot take: Ethereum will be the winning “interop” chain. Interop for the sake of it doesn’t make sense, but interop to access critical assets does. This is why Ethereum will have more bridges built into it than any other chain. It will become the de facto, connective hub.”
Hot take: Ethereum will be the winning "interop" chain. 🤯
Interop for the sake of it doesn't make sense, but interop to access critical assets does.
This is why Ethereum will have more bridges built into it than any other chain.
It will become the de facto, connective hub.
— DCinvestor.eth | aftab.eth (@iamDCinvestor) February 8, 2020
Competing platforms like Tron has a virtual machine compatible with Ethereum. This way, users can easily shift from one blockchain to another if conditions are not as favorable or if incentives are too irresistible on one end.
Aside from virtual machine compatibility, there are other bridges being built. Recently, Ethereum Classic had an upgrade, Agharta that completed ECIPs triggered by Atlantis. The objective was to foster interoperability with Ethereum.
This, combined with steady development and growth of useful dapps, would increase the demand of ETH, buoying bulls aiming for $300.
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich