Why is ETH superior to other coins?

The price of ETH has reached its highest level in 2020 at USD 324. Why is ETH superior to other coins?Let's refer!

Reason 1: DeFi's strong growth

The first and perhaps biggest catalyst of the ETH uptrend in recent months is from the explosion of DeFi.Since May, the total locked value in DeFi protocols has nearly quadrupled to $ 3.75 billion.Current popular DeFi protocols such as Compound, Maker, Aave, and Curve Finance, have seen a significant increase in the number of participants since mid-June.The DeFi market has been expanding at a rate so fast that the Ethereum blockchain network is struggling to keep up.When users use the DeFi protocol, they need to send data in the form of transactions and smart contracts. In most cases, users must use decentralized exchanges to purchase different tokensIn June, the Ethereum network became overloaded. And when the network is congested, users are required to pay higher gas or transaction fees to process their payments or smart contracts.John Todaro, head of research at institutional trading platform TradeBlock, said on twitter that DeFi's growth would push ETH prices higher in the long run.Over the past year, the total locked value in DeFi protocols has increased from US $ 500 million to US $ 3.4 billion. This is exponential growth in just a short time.

Reason 2 and 3: Ethereum 2.0, options market, futures market and spot demand increased sharply

Since the beginning of the second quarter of 2020, the options and spot markets for Ethereum have recorded strong demand.In addition, previous bull runs have been led by Ethereum's futures market.The options and futures markets are playing a big part in ETH's rally.Specifically, on July 24, the exchange Deribit said it had reached a record high of volume of options and open contracts for ETH.Deribit tweet said:“We have recorded a record growth of ETH options and open contracts. Of which the highest 24-hour volume is $ 49 million, Deribit currently accounts for 93% of the global ETH options market. ”In addition, in the long run, Ethereum 2.0 may act as a new catalyst, especially when ETH is approaching the fourth quarter of 2020.

Earlier this week, Ethereum 2.0 developers revealed that the launch of the official beta of Ethereum 2.0 will begin on August 4.Recent progress has been made in upgrading to Ethereum 2.0, particularly on the Medalla testnet, which could further boost the growth of ETH in the coming months.DeFi is growing rapidly, and the increasing demand in the spot and options markets, combined with the network upgrade to Ethereum 2.0, seems to be all this is driving a sharp rally. for ETH in the future.Currently at the time of writing, ETH price is trading at 324 USD, up 6.35% compared to the last 24 hours.