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3 reasons for high demand for Ethereum this year

Coming from a 2019 of many difficulties, Ethereum shows to have a brilliant 2020 ahead.

From June 2019 to January this year, Ethereum (ETH) saw its price drop by about 50% against Bitcoin. While some people may have their own different opinions and suggestions about the cause of the Ethereum setback, the fact is that the price drop was partly triggered by its negative journey, as key projects on its blockchain network were ineffective.

In addition, the second largest cryptocurrency by market assessment suffered a market correction in the second half of 2019. These and a few other real factors contributed to the massive decline of the cryptocurrency, which belatedly led to an uninspiring performance in early 2020 On most exchanges, ETH / BTC pairs have declined over the months.

However, the crypto universe is still not tired of ETH. Investors in the midst of chaos are seeing Ethereum having one of the top performances in the crypto market in 2020. So, as 2020 looks like a promising year for Ethereum, its demand has skyrocketed.

Ethereum in the first quarter of 2020 found its game pace, as its price rose almost 98% in February of this year to reach the first 2020 high of $ 280, this reinforced hopes and optimistic views on cryptocurrency to levitate higher in its capitalization.

One thing that makes Ethereum worthy is the growing number of DeFi projects, which, unsurprisingly, had a positive effect on user activity on the Ethereum network. This will continue to strengthen its foundations and could rapidly increase the ETH ecosystem this year.

Ethereum underwent several advances in its network in the last quarter of 2019. These new developments were brought about by a significant software update (hard fork) called Istanbul. In this hard fork, a second scale solution was incorporated and promised to allow a TPS of around 3,000 transactions per second. The best part is that plans are being made to further develop the sizing solution.

Ethereum, along with most of the market’s cryptocurrencies, has managed to overcome all the critical resistance levels established by bearish sentiments due to the significant fear of instability in the crypto market. However, market experts are saying that Ethereum may be achieving something extraordinary this year.

Source: zycrypto

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