Ethereum (ETH) is experiencing strong momentum as a result of increased demand for DeFi and DEX. Strategists say ETH 2.0 will continue to affect Ethereum positively.
Ethereum is experiencing a strong momentum in almost every respect. Wages and transaction activity increase, network growth is accelerating. A strategist says ETH 2.0 can continue to increase the sensitivity around ETH. Kelvin Koh, co-founder of Spartan Group, an Asian-based venture capital firm, says:
“The strong move in Ethereum is about the launch of ETH 2.0, a major catalyst. For the next 2-3 years, every stage of ETH 2.0 brings Ethereum closer to its final state and will be a catalyst for ETH. ”
Since the Ethereum blockchain network shows a sign of clogging, the expectation of ETH 2.0 continues to increase.
Why Are Strategists Optimistic About Ethereum?
For many years, analysts have considered scalability the main barricade in the adoption of decentralized applications (DApps). DApps containing Decentralized Finance (DeFi) protocols process all information on the chain in the Ethereum blockchain. Whether it’s a payment or a smart contract, every DApp user sends the data in the form of transactions. The price of a transaction made in Ethereum is a fee called gas which can be costly. When there are a significant number of unapproved transactions, this can cause the Ethereum network to become blocked. ETH 2.0 significantly reduces the possibility of network congestion because it reduces Ethereum’s dependence on miners.
Eventually, miners will be phased out of the network as ETH 2.0 spreads. In ETH 2.0, users will process data by “stacking” their ETH. In turn, they will receive incentives based on the ETH 2.0 reward system.
However, since ETH 2.0 solves a major problem in scalability, its implementation also turns out to be quite a complex structure. As a result, ETH 2.0 has been delayed several times in the past and has significantly increased the expectation. When ETH 2.0 started, many strategists believe it will positively affect Ethereum.
For now, industry experts and strategists are responding positively to the progress of ETH 2.0 and the Ethereum trend. As DeFi and decentralized exchanges (DEXs) continue to increase demand, various data points indicate that the blockchain is growing rapidly.