ETH trades 80% below its $1,400 high, but Ethereum metrics are setting records | CryptoSlate
From a macro perspective, Ethereum has done well over recent months. Since reaching a low of ~$88 during March’s global liquidity crisis, ETH has sustained a strong rebound of 170 percent, according to CryptoSlate data.
Yet after some have considered the trend and metrics of the Ethereum network, a sentiment has spread that ETH is actually underperforming relative to its fundamental strength.
Ethereum is stronger than ever
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At the current price of $238, Ethereum is more than 80 percent below its all-time high price just north of $1,400. In a cruel twist of fate, though, the fundamentals of Ethereum are stronger than ever before.
If an exponential explosion in the number of active users, DeFi tokens, and more isn’t what spurs an Ethereum bull run, what will?
According to most, the launch of the Ethereum 2.0 upgrade is what will trigger the bull run.
For those that are unaware, a brief recap: ETH 2.0 is an all-encompassing upgrade that will overhaul how the blockchain works, making it much faster and cheaper than the current iteration while promoting decentralization. It will do so by implementing technologies such as Proof of Stake and sharding.
What’s important to the price narrative is Proof of Stake, also known as staking. Staking will incentivize the locking up of ETH, thus reducing the supply that can be sold on the market, while also promoting investors to buy large amounts of the cryptocurrency.
Investors believe that should the incentive structure be proper, it will do enough to cause ETH to rocket higher. Professor and crypto investor Adam Cochran went as far as to say that the implementation of staking and the rest of the ETH 2.0 upgrade will cause the “largest economic shift in society.”
Unfortunately for ETH bulls, there is considerable uncertainty about the upgrade.
Just recently, Justin Drake of the Ethereum Foundationsaid that he doesn’t think the first phase (“phase 0”) code of the upgrade can be rolled out in 2020, despite statements from others claiming otherwise.