Is ETH the fate of XRP? And what about the price of the token
There is a lot of speculation on the net that Ethereum may face the fate of Ripple. Despite this, the price of the cryptocurrency has reached a 2-year high
For investors in ETH (Ethereum cryptocurrency token) 2020 ends on a good note. The price of the second most popular cryptocurrency exceeded $ 736.39.
According to CoinMarketCap, the price of the cryptocurrency is up 11 percent today. The previous time ETH was above $ 700 in 2018. A record high of $ 1,417 was then reached.
Analysts say the new momentum could drive ETH above $ 750 over the next 24 hours. In the event of a rollback, the cryptocurrency will test the $ 650 support level.
What affects the price of the Ethereum token
The market perceives ETH price movement ambiguously. In 2020, 300% growth in demand and price of ETH was associated with the popularity of DeFi projects tokens, many of which are built on the Ethereum blockchain.
In 2021, these projects will continue to be popular. Therefore, further growth can be expected. It will be activated by the launch of the Ethereum 2.0 platform.
So far, there is no data on the exact launch date. Currently, the zero stage is being implemented, and the platform update itself is only 18 percent ready.
Significant progress will be made on the project in the coming months. The value of the token depends on the success of the update implementation and the launch of the Proof-of-Stake model, which solves the problem of network congestion and high transaction fees.
What the future holds for the project
On the one hand, the upcoming network optimization improves the prospects for the use of cryptocurrency. This is reflected in the price of ETH. On the other hand, tensions are growing in the Ethereum community. Many are worried that the project may suffer the fate of Ripple.
For example, cryptohaiter Vijay Boyapati, a frequent critic of Ethereum, regularly points out in his tweets that the total supply of cryptocurrency is still unknown.
Ripple's founders enriched themselves by granting themselves a massive pre-mine and pretending they weren't launching a security. The SEC gave them a free pass for years.— Vijay Boyapati (@real_vijay) December 27, 2020
Ethereum's founders enriched themselves in the same way. The SEC gave them a free pass for years...
Vijay says ETH is being positioned as an asset, which it really isn't. The SEC temporarily turns a blind eye to the situation, as it did with Ripple. And it's dangerous!
Recall that the consideration of the case against Ethereum was already conducted in 2018. Then almost all cryptocurrencies against the background of strict regulation sank heavily in price.
However, subsequently, according to the official version of the SEC, ETH was not recognized as a security. We will follow the development of the situation!