Several factors have come into play lately pushing crypto currency prices to new all-time highs.
Institutional demand, inflationary monetary policies, and the uncertain outlook of the world’s top economies have all played a part in the current rush to crypto.
And in the middle of all this, the folks at Eth2.0 went ahead and launched Phase 0, dubbed the Beacon Chain.
How well received this development was, and how much faith are people putting on Ethereum’s new venture, can be deduced from the fact that as of this writing over 2 million ETH have been subscribed on the Staking Contract. That is approximately 1.17 billion USD at the current price (1.7% of the total market cap).
At the same time, ETH held on exchanges is droping towards the 2 year low of 22.43%. A similar metric is true of Bitcoin, having witnessed a 21% drop from February to December levels. These factors suggest that investors are putting their coins in safer storage, as they do not intend to trade but to hold it expecting future upside on these assets.
The Eth2.0 contract is an even stronger signal, as those funds will not be able to be withdrawn until Eth 2.0 Phase 1 is launched, which could take a year or more.
These is currently a drop in prices, caused in part by the legal troubles faced by XRP, one of the top 5 coins by market cap. But it appears there are some solid bases to the crypto market’s late year surge, as well as a positive outlook for 2021.
Merry Crypto Christmas to all!
It must be noted that there is always risk associated with dealing in cryptocurrencies. This is an unregulated market, so care must be exercised to contrast the information provided in this article before you commit any funds. This article is not intended as financial advice.
