One of the most frequently asked questions in a Bull Market is the following:
"Wow, asset X appreciated 100% in two months, is it still possible to invest?"
The answer to that question, as well as to almost any other question about investments, is a favorite of most economists: It depends.
The day before yesterday, ETH reached its All Time High (highest value in its history) after an appreciation of more than 120% in less than thirty days. The asset surpassed the $ 1400, joining Bitcoin, Polkadot and Chainlink as assets that reached their highest values in history in 2022.
As a result, the question most investors are asking at the moment is: Is ETH still cheap? Well, let's look at the current market context to understand.
What can Bull Market teach us?
The first point to understand what this moment of All Time High in the cryptocurrency market can teach us about the assets that, possibly, "will dominate the market."
If we analyze the market dominance, 2022 has a fundamental point of difference in relation to 2017, the consolidation movement of BTC and ETH, which represent about 86% of the entire market value of cryptocurrencies.
What does that mean? It means that, in the race for innovation and development of solutions for this market, we have two big winners and that these assets tend to be the most relevant in the market, in the long run.
In addition, it is important to comment that for ETH this is much more important than for BTC, since ETH breaks the hegemony of BTC as the only reference in the cryptocurrency market.
If ETH preserved its market relevance, why would it be devalued in relation to BTC? To answer this question, I separated four facts that reinforce the thesis of devaluation of ETH in relation to BTC.
1. The Largest Blockchain
Given the significant growth of the ETH ecosystem, especially by the DeFi and Stablecoins market, today, its blockchain transacts, daily, over 12 billion dollars, almost 25% more than the Bitcoin blockchain.
two. Ethereum 2.0
THE ETH 2.0 is already occurring, and has over 3 billion dollars in Stake of future validators of the ETH network.
This update promises to resolve all scalability issues at ETH, and make this network much more scalable.
If you want to understand the theme more deeply, visit our video about Ethereum 2.0.
3. Ethereum at CME
THE largest commodity exchange in the world announced that it will list ETH futures contracts in February 2022, on its platform – significantly increasing the access of institutional investors to Ethereum.
4. Exploding DeFi
O Defi market, which has most of the projects linked to Ethereum's blockchain, has just surpassed the 25 billion dollars in capital locked up, in its operations, almost double what was recorded at its peak in October 2020.
Just like Bitcoin's All Time High, which is very justifiable due to the global macroeconomic situation and the evolution of its network, ETH's All Time High is also evident due to the evolution, both of the ETH network, and of the ecosystem connected to this blockchain.
As Messari's Ryan Watkins said: it's hard not to be optimistic about ETH.
ETH 10k dollars, I believe!
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