Ether recorded the largest daily price increase in the past 20 days, amid growing community confidence in the imminent deployment of the ETH 2.0 update.
The broadcast showed a positive trend and a rapid increase in recent days. Yesterday morning, the price of ETH, according to CoinMarketCap, was about $150, but by the end of the day it reached $163 and continued its growth today. Now the cost of the second largest cryptocurrency is just above $172, which shows an increase of more than 15% over the past day.
Industry experts believe that this rapid growth is due to growing confidence in the planned system-wide update of ETH 2.0, which is due to be rolled out at the end of July. As part of phase 0 of the upgrade, the network bandwidth should be increased, and the Beacon Chain should be launched, which includes a proof of stake (PoS) check.
“From the developer’s point of view, Ethereum is the most popular blockchain, where most of the smart contracts and decentralized applications are deployed,” said Damien Brener, founder and CEO of OpenZeppelin.
“People understand that the network effects of Ethereum, especially in terms of community and fit for layout (smart contracts on Ethereum interact with each other), are much stronger than they thought. This can lead to an increase in confidence in the platform and, consequently, to an increase in the price of the cryptocurrency, ” added Brener.
According to the co-founder and head of Kenetic Capital, Jehan Chu, despite the fact that the update has been developed for 5 years, during this time, no cryptocurrency has been able to take the position of Ethereum.
“Ether continues to be the second largest cryptocurrency, and its recent price jump demonstrates traders’ long-term faith in its position in the market,” Chu said.
“If you forget about the price, the real interest is in how Ethereum continues to go to ETH 2.0 and solves the problems of speed and scalability of the network. In today’s conditions, networks need to survive, and no community of Protocol developers has reached such a high level in improving the blockchain as the Ethereum community, ” he said.
Recall that recently, the co-founder of Ethereum Vitalik Buterin said that the developers of ETH 2.0 plan to launch multiclient test networks by the end of April. In addition, Buterin recently proposed a new roadmap for ETH 2.0. one of the key ideas that can be a “breakthrough” in the development of a new version of the network, were polynomial obligations.