Ethereum’s struggle to maintain a steady price over the last week has been tough on all crypto owners, but it seems like there is no end in sight for those who have their eyes set on upgrading. Cryptocurrency enthusiasts continue pouring assets into Ethereum’s network upgrade as they anxiously await its release – which could happen any day now!
The introduction of Beacon Chain in December 2020 is likely to have caused the ETH community to stake more than 8.3 million coins under Ethereum 2.0 during that time period, with many people attaining crypto wealth through investments on this new project while prices went up from $600 all-time high (to nearly $4,900) by November 2021.
Ethereum’s network upgrade was one of the most anticipated events in crypto. As it approached, people were starting to get anxious about what will happen when that happens and how their investments would be impacted. However, as a result of the said event in May 2021, there are 5 million total staked coins valued at $14 billion which has caused prices for all cryptocurrencies including Bitcoin (BTC) other top tokens like Binance Coin(BNB), Cardano(ADA).
Ethereum has been facing scalability issues for some time. Vitalik Buterin says that with the upcoming network upgrade, the crypto will be able to overcome these limitations by making its ecosystem more efficient which should help all stakeholders involved flourish even better than before.
With the shift from an outdated and inefficient proof-of-work (POW) network to a more efficient, improved version called PoS or “proof of stake”; ETH is solving many problems at once. This includes eliminating pesky scalability issues by moving away from mining entirely which consumes too much energy while also making confirmation times quicker than ever before.
The Ethereum 2.0 deposit contract has been a hot topic lately with the value of staked coins increasing by more than $7 billion in just five weeks’ time!
Ethereum vs Bitcoin
Despite the difference between BTC and ETH, global investors have always compared these two top digital currencies as a store of value.
The value of Ethereum has skyrocketed, but it looks like Bitcoin is winning in terms of adoption. While the price of Bitcoin continues to grow rapidly with each passing day while Ethereum is up by approximately 400%, it seems like people are finally starting to take notice that this cryptocurrency offers them more opportunities for profit than just being stored away safely under their mattress or closet somewhere where no one can find them.
Paolo Ardoino, CTO at Bitfinex, had this to say, “In recent years we’ve witnessed a major shift in the acceptance, and utility, of bitcoin in Latin America. This has contributed to economic growth in the region and provided a beacon of hope for financial freedom. Intuitively, people are seeing the use cases for bitcoin.”
Paolo adds, “Whether this is as a hedge against inflation or for remittances, we’re seeing a sea change in the acceptance of cryptocurrency in the region across countries as diverse as Argentina, Ecuador, El Salvador and Brazil. Bitcoin has emerged as an alternative to traditional payment systems. We are arguably on the cusp of a technological revolution with bitcoin leading the charge.”