As the world’s second-largest cryptocurrency by market capitalization, Ethereum has had a good year so far. The price of ETH is up nearly 400% since the start of 2021, and it doesn’t show any signs of slowing down.
There are many reasons for this Ethereum optimism. First and foremost, the rise of decentralized finance (DeFi) has been a major tailwind for ETH.
DeFi is a category of financial applications built on Ethereum that allow users to do things like trade crypto assets, take out loans, and earn interest on their digital assets.
The growth of DeFi has been explosive. In the last year, the value locked in Ethereum DeFi protocols has grown from $1 billion to over $40 billion.
This rapid growth has helped drive up the price of ETH, as users need to own ETH in order to participate in DeFi protocols.
Another reason for Ethereum’s recent success is the launch of ETH 2.0. ETH 2.
0 is a major upgrade to the Ethereum network that will make it faster, cheaper, and more scalable. This upgrade is expected to be completed in phases over the next few years, and each phase will be accompanied by a rise in the price of ETH.
So far, everything seems to be going according to plan for Ethereum. The network is seeing rapid adoption thanks to DeFi and anticipation is building for ETH 2.
0. But does this Ethereum optimism have a token?.
The answer is yes! The token that represents Ethereum’s success is called Ether (ETH). Ether is the native cryptocurrency of the Ethereum network and it is required to participate in DeFi protocols and use other Ethereum applications.
As more people use Ethereum and its applications grow in popularity, the demand for Ether will continue to increase. This should lead to continued price increases for ETH, making it a great long-term investment option for crypto enthusiasts.