Ethereum is the Best-Performing Cryptocurrency of 2020 So FarFebruary 4, 2020
There is a sense of freshness in the air when it comes to the new decade and the state of the crypto markets. Even since the disappointing end of 2019, when the hopes of the crypto spring of that year failed several months later, the traders and investors were mostly ready for a change of pace. This came about with the start of 2020 and it seems that the world is in the midst of a quickly-changing setup of the old crypto balance of power. This is particularly true when it comes to ethereum, the second-largest crypto network currently in operation.
In recent weeks, ETH attained high praise for its performance in the current small bull market that might or might not end up being a bigger one. Yet, while the token from the ethereum network did shine so far, it would also be easy to use some old concepts here, like for example the so-called Flippening from a couple of years back. Instead, it is wiser to examine what might be pushing ETH higher in terms of its price and market cap. Also, do the same fact then tell anything about either its future or the course that the altcoin market is taking in the coming weeks and months.
Up by 50 percent
Bitcoin’s rise in recent weeks got a lot of attention, but it is the ethereum network that is shining right now. Its position in the market of February 2020 is stronger than that of bitcoin. As the second-largest blockchain network by market valuation, it managed to rise by 51 percent on the year-to-year. In comparison, the bitcoin network managed to rise by 34 percent. Because of that, it is now clear that the same cryptocurrency is rushing ahead of bitcoin.
Also, analysts have noted a steady influx of capital into the ethereum market. The ETH/BTC pair rose 14 percent in favor of ethereum. It climbed up from 0.017 BTC to over 0.02 BTC. This is also showing where the money is headed in the present moment. All the data is showing that ethereum is having an amazing start of the year so far, even though there is no doubt that the rest of the crypto market is also in the positive zone.
Sources of the Push
At first, ethereum was spurred on by the overall rally in the crypto markets. Bitcoin led this process and it came on the wings of the sharp escalation of geopolitical conflicts. 2020 already came hot on the heels of 2019, a year when social unrest rocked every continent in the world for a variety of different reasons and when no previous conflict was resolved. This year, however, the same simmering tensions in one part of the world quickly grew to a boiling point. It began with the US killing of a top-ranking general of Iran’s Revolutionary Guard in Bagdad.
A few days later, the same military organization fired rockets at US bases in Iraq, putting the world on the precepts of the biggest war since the Second Gulf invasion. Luckily, a conflict that would have most likely produced an unimaginable economic and humanitarian disaster was avoided. However, the investors were not blind to these events and their money reflected the same sentiment. First, many of those same investors hurried to move their money into safe havens, which immediately benefited BTC. Its price shot up and ethereum, which showcases the highest correlation efficiency with BTC did the same, tailing the price rally bitcoin had. But this was just the start of the movement in this cryptocurrency ecosystem.
Once the general crypto rally was established, most analysts expected that ethereum will continue to follow the movement of bitcoin. The biggest cryptocurrency settled down, just as the major global instability also began to lessen and move away from a catastrophic conflict. However, this is when ethereum began its independent momentum, pushing further alone and without the backing of the BTC movement. This was once again noticed by parties outside of the crypto domain. The Financial Times was one of those who named ethereum as a crucial cryptocurrency network thanks to its smart contract feature.
While this is basic information inside of the crypto field, pushing that narrative in the mainstream still has significant benefits for the cryptocurrency. These are numerous and some are more pronounced while others are less visible. All of them aid the network by providing it with exposure, thus also social media chatter and ultimately conversions in the form of potential new users. As some of these open up their digital wallets, the network as a whole grows and expands.
ETH up to 500 USD
All relevant measurements in the ETH market are showing a trend of bullish continuation. Traders are reporting posting long positions that indicate a growth in the ethereum token price which is several times what it is today. Some openly suggest that the rally will take the token up to 500 USD or even beyond 600 USD. These prices have not been seen in the crypto markets for more than two years. But, these predictions are hard and often as good as pointless. The modern digital ventures like esports or social media all have the same underlying tendency – anything seems possible but very little diversity of results is actually present in the end.
Instead of a myriad of possibilities, the final duality usually consists of a small chance of incredible success and a much bigger chance of a total failure. In the case of ethereum, the same possibility is practically minimal being that nothing from today’s perspective could even, in theory, undermine cryptocurrencies like ethereum and bitcoin so that they lose all of their value. But, the success of ethereum today is by no means a guarantee that this success will propagate itself deeper into 2020. Like always the possibilities are there, but the chance of ethereum climbing to 500 USD is still nearly impossible without a similar movement in the rest of the cryptocurrency playing field.