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ETH Following BTC’s footsteps

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The cryptocurrency Ethereum broke the 500 resistance against the US dollar for the first time in more than 2 years. The network’s hashrate is also on the rise, reaching a new all-time high, suggesting that more miners are joining the race to mint the second largest cryptocurrency by market capitalization.

Ethereum’s market capitalization has maintained a sizable rally throughout the year, from $ 13.74 billion in January to $ 53.86 billion today. Likewise, the volume of daily transactions has increased compared to 2019. In the last 24 hours, cryptocurrency trading in dollars reached a value of USD 3.53 billion in trading volume. Ethereum last experienced these price levels in June 2018, amid a bull run that saw it hit its all-time high of more than $ 1,300. Since then it has seen some fluctuations, even dropping below $ 100 in June of last year.

Although the price of ethers in dollars is on the rise, the same cannot be said for the ETH / BTC pair which is moving in the exact opposite direction, hitting a low from the last 4 months. If deposits continue at the current rate, the Ethereum 2.0 mainnet will not launch on December 1, but in the first weeks of 2021.Of course, the percentage of participation could change. As November 24 approaches, the growing anticipation may spur more people to deposit their ETH. 

So what are the next steps, and when can Ethereum become fully scalable? The launch of the beacon chain is known as phase 0 in the Ethereum 2.0 roadmap. The next significant developments are scheduled for 2021 and will involve the launch of 64 beacon chains, which will operate under the consensus of Proof-of-Stake (in Spanish Proof of Stake) validated by those who staked their ETH. However, in its initial state, sharding chains will not support smart contracts or user accounts. Perhaps the most important milestone for the current Ethereum 1.0 ecosystem is phase 1.5, in which the Ethereum mainnet joins the beacon chain as a shard chain. This will mark Ethereum’s transition to a full Proof-of-Stake consensus. Again, it is scheduled to occur in 2021, but an exact date is not yet available. Only when the final phase of Phase 2 arrives will it be possible to assess the full effect of the Ethereum 2.0 update on the scalability of the network. At this time, the shardings will be fully operational, supporting smart contracts and all kinds of transactions. However, this could take up to two years. In the roadmap, the Ethereum Foundation states: “Phase 2 is still very much in the research phase”, effectively confirming that development is not yet underway.

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