The sentiment around Ethereum has not been as strong as Bitcoin in the past two weeks. But over the longer term, researchers expect ETH to perform particularly well in the next bull cycle.
The optimism around Ethereum in the medium to long term comes from the potential fundamental catalysts that await in 2021.
Anthony Sassano, who leads marketing at Set Protocol, Ethereum has three “accrual pillars.” However, Ethereum currently only has one of the three in trustless store of value (SoV).
When fee burning and staking are introduced, mostly through the ETH 2.0 network upgrade, it could further catalyze Ethereum.
ETH 2.0 is the Main Theme For Ethereum in 2021
Since March, the price of Ethereum has increased from $90 to $410. After a four-fold increase in price within eight months, fundamental factors show that it remains undervalued.
Despite its price spike since March, from the 2018 peak, ETH is still down from $1,440 to $410. Yet, the total value locked (TVL) across decentralized finance (DeFI) has hit an all-time high.
The explosive demand for DeFi has caused the Ethereum blockchain network to clog at times. That led the demand for ETH 2.0 to increase and for a larger blockchain capacity.
If the user activity in DeFi continues to increase, then the appetite for ETH 2.0 would also rise in tandem. When ETH 2.0 gets activated on Ethereum, then it would lead to two of the remaining