It’s been a very strange July for the world’s largest cryptocurrency by market capitalization. Bitcoin (BTC) is acting uncharacteristically stable this month, while a variety of altcoins seem to have taken the volatility torch for now. With all the hype surrounding Ethereum 2.0, and “altcoin season” The topic of Bitcoin value sliding down to the number two spot is making its way around various crypto forums. As a result, many are using various strategies on YouHodler to prepare their portfolios for the upcoming “flippening.”
While Bitcoin value remains relatively stagnant, Ethereum (ETH) has been actively gaining the lastmast few months not only in price but in some other related metrics as well. ETH price and active address are all strongly challenging Bitcoin partially due to the hype of the upcoming Ethereum 2.0 update and the overall excitement for decentralized finance (DeFi) platforms running on the Ethereum network.
Analytics firm Messari reports a 128% increase in the number of active addresses in the Ethereum network. Compared to the number of BTC actives wallets which only increased by 38%. If we examine unique active ETH wallet addresses, we’ll see an even higher percentage increase of 160% since the beginning of 2020.
Ethereum 2.0 hype definitely helps bring more eyes to the ecosystem but as for immediate impact, many are giving credit to the surge of DeFi applications. Of all the decentralized apps (dapps) volume on the network, DeFi apps are responsible for 975% of that volume.
ETH price may not be doing anything incredibly exciting at the moment, but it has had a remarkable 2020 thus far. Since the start of the year, ETH is up 89% and since the big March 12 market crash, recovered 117%. Meanwhile, Bitcoin is up only 28% and 92% respectively. Despite ETH’s heroic rise this year, the 2nd most popular cryptocurrency seems to have run out of steam due to news of the Ethereum 2.0 delay. However, with this announcement, the path is now cleared for other altcoins to make their move.
Chainlink (LINK) is the new hero of July, sporting a 1,000% increase in value since last year. LINK, an ERC-20 token based on the Ethereum blockchain is just one of many alternative blockchains experiencing an increase in value recently. This goes to show that Ethereum 2.0 delays re not slowing down these projects from building on Ethereum which is a great sign for the future of Ethereum 2.0 and all ETH “HODLers.
For many YouHodler clients, the Ethereum 2.0 delay is actually a welcome sign. For one, it gives people more time to prepare their portfolio. In addition, it is opening the door for other tokens on the Ethereum network to truly shine. Bitcoin value in the meantime has found a new breath of fresh air for YouHodler clients, who are using the crypto as something more of a stable hedge this month.
Previously known as the “king of volatility” Bitcoin’s maturity is evolving at a rapid rate in July and it’s become a strong addition to anyone’s portfolio that is looking for a stable asset not attached to fiat currency. Meanwhile, volatile altcoins like Stellar (XLM) and LINK are generating tons of opportunity on YouHodler’s crypto-backed loans.
Last week, we showed a real-life example of a YouHodler client taking 1200 LINK as collateral and through some creative techniques, multiplied that amount to 1296 LINK. Besides loans, users can also start multiplying their ETH via other tools such as Multi HODL and savings accounts.
YouHodler offers 4.5% APR on ETH savings accounts. From there, clients can utilize the Barbell Strategy to further activate their ETH with Multi HODL. With only a 1% origination fee on Multi HODL, users just need ETH to go up or down more than 1% (depending on their choice) to profit. This is a quick and easy way to play with ETH’s volatility and start stacking ETH before Etherem 2.0 potentially sends this token to new heights.