Ethereum (ETH) 2.0: Should You Believe the Hype?
Now that the 3rd Bitcoin halving has finally come and gone, everyone in the crypto community can finally take a break from all the hype. Well, at least that’s what they thought. With Ethereum founder Vitalk Buterin breathing new life into the highly anticipated “Ethereum 2.0” we have a new major event to look forward to coming in July (hopefully). That being said, how much of this excitement is just hollow, FOMO hype, and how much of it is based on facts? Let’s take a look at the numbers.
Ethereum 2.0: ETH has silently been gaining popularity
While the whole world was distracted by the economic crisis, and Bitcoin halving, the number two cryptocurrency by market cap has silently been pushing along and producing some good results. As seen in the chart above, ETH daily transactions have increased from ~450,000 in January 2020 to now almost 900,000 transactions daily. This is the highest level we’ve seen since July 2019. Furthermore, ETH’s daily gas usage is matching this trend by moving up from 37 million in January 2020 to over 60 million today.
Ethereum 2.0 will create demand (real demand)
One of the top arguments of “crypto haters” over the past few years is how there is no usage for cryptocurrencies. There is no demand for it and hence, there is no intrinsic value. That is a philosophical debate for another time but with the release of Ethereum 2.0, the demand for ETH will be real and easy to grasp for many. The main use case with ETH 2.0 will be the demand for gas in decentralized computers.
Once the update is released, ETH transactions/second will drastically increase making it far more efficient for both consumers and commercial establishments alike. Say goodbye to high transaction fees, gas backups, and long wait times for dApps we’ve seen in the past. Even in a busy market situation, we will see this all go away. Hence, Ethereum can now deliver highly scalable consumer and commercial products, making it far more attractive for larger companies to join.
As Robert Metcalfe’s law states, the more demand there is for a network, the more valuable that the network becomes.
ETH whales are prepping for ETH 2.0
As of right now, ETH whales seem to have a bullish sentiment about Ethereum 2.0. ETH volumes have surged over the past six months from $3.2 billion on New Years’ Eve 2019 to almost $6 billion today.
Technical analysis aside, there are additional reasons why this event may prove to be more profitable than others in the past. Unlike the bull run from 2017, today’s crypto exchanges essential come standard with fiat-on ramps. It is no longer a headache to sign up and by crypto on the top exchanges like Binance and Kraken. All we need is a few nice headlines from Forbes or CNN to catch the attention of traditional investors and direct them to these fiat onramps.
How YouHodler can help you accumulate more ETH
Vitalik Buterin recently outlined a multi-year plan for Ethereum 2.0, meaning we probably won’t see a bull run magically appear overnight. However, in crypto, every cent counts and it pay sto be prepared ahead of time. To help, YouHodler has several great tools for this very purpose:
Crypto backed loans: If you want to buy ETH but don’t have the funds now, simply use your other crypto (e.g. BTC) as collateral for an instant, USD, EUR, CHF or GBP loan. Then you can use that fiat to buy ETH right here on YouHodler and get in while the price is still low.
Turbocharged loans: If you have faith in the future of ETH, then Turbo Loans are a fast and easy way to multiply large amounts of ETH. Using the “chain of loans” principle, YouHodler Turbo Loans takes your crypto as collateral to ignite a chain of loans that buys you more crypto. When you pay back the loan, you get a multiplied amount of crypto back, and then you simply wait for ETH’s price to rise to reap the benefits.
Multi HODL: Since ETH’s price has the potential to rise and fall over the next several months, Multi HODL helps you take advantage of each volatile opportunity. Multiply ETH via BTC, XRP, LTC or any other crypto we have on the platform. Simply choose the direction you think your chosen crypto will go, set your level of risk/profit, and then let the market do the rest. Multi HODL makes “trading” crypto fun, easy, and more efficient than other exchanges.