Ethereum has triggered a surge of belief amongst those in the crypto market, especially analysts and long-term digital asset traders. Ethereum was one of the most profitable digital assets as last year ended, the digital asset has not slowed down as it has continued a surge that it brought from the previous year.
Even though some bearish impulse has appeared, traders and investors in the digital asset are backing it long term the way Bitcoiners are doing. According to the market cap, analysts have pointed out that Ethereum is well placed to hit $10,000 or even the $20,000 figure in the coming years to buttress their beliefs in the second digital asset.
Pal says Bitcoin and Ethereum chart showing same readings
Even though this is laughable, one thing that should be considered is that if the right elements are present, then the digital asset might emulate Bitcoin and make the bullish run. This predicted run of form was first brought to the Ethereum community’s attention by seasoned analyst and trader, Raoul Pal, as the Real Vision CEO mentioned that Ethereum was riding along with Bitcoin in the battle for a bullish surge. He noted that looking at the law of Melcafe, one would deduce that Ethereum is showing the same pattern that Bitcoin is showing, which has triggered the bullish surge of the digital asset.
Making jest of those who do not believe in Ethereum, Pal took to his Twitter page to note that he thought Ethereum was a useless coin, but it is now making the same move in the leading digital asset in the crypto market. According to various analyses, Ethereum would have to trigger many buys and enter into the $1.1 trillion market cap region to make it to $10,000 on time. Presently, Bitcoin is still leading several other digital assets with Ethereum inclusive in terms of market cap, with Bitcoin boasting about $640 million while Ethereum is having just a meager $120 million.
DeFi sector was one of the main triggers of Ethereum’s rise in 2020
Ethereum might be well placed to indeed make the surge as several in chain data has suggested that the digital assets market cap has been growing in leaps and bounds since it hit an all-time record high of active addresses a while back. Pal believes that since Bitcoin went through that cycle, there is no reason why Ethereum can’t go through the cycle, pointing at the on-chain data to back up his claims.
One factor that has boosted Ethereum’s rise over the years has been the massive surge in the amount of users that the network possesses. Last year, investors and traders began to complain bitterly at the speed of transactions on the network due to massive amounts of people on the network making transactions. The crypto market normally would not boast of this staggering amount of users that Ethereum has dragged in, well, that was before Ethereum made its way into the market.
Another thing that has provided Ethereum with a platform to make its explosive growth was the massive news grabbing decentralized finance sector. The DeFi sector saw a lot of users and protocols enter the Ethereum blockchain last year, with the price of the digital asset reacting swiftly to the massive jumps across various protocols. The DeFi sector previously had its market cap pegged at around $1 billion as of early last year, but the figure has jumped and is now around $21 billion.