From June 2019 till January this year, Ethereum saw its price fall about 50% against Bitcoin. While some people may have their own opinions and different suggestion on the cause of Ethereum’s setback, the fact remains that the price drop was partly triggered by its negative journey as essential projects on its blockchain network were ineffective.
Also, the second-largest cryptocurrency by market valuation suffered from a correction of the crypto market in the second half of the year 2019. These and other few more real factors contributed to the massive decline of the cryptocurrency, which belatedly led to an uninspiring performance at the beginning of 2020. Across most exchanges, ETH/BTC pairs decreased over the months.
However, the crypto space isn’t yet fulfilled with Ethereum. Investors amid the mayhem are projecting the future of Ethereum as one of the top crypto market performers in 2020. Therefore as 2020 appears to be a promising year for Ethereum, so has its demand skyrocketed.
Ethereum in the first quarter of 2020 found a rhythm to its game as its price surged almost 98% in February this year to attain a first 2020 high of $280, this bolstered hopes and optimistic viewpoints about the cryptocurrency to levitate higher in its capitalization.
One thing that makes Ethereum worthy is the increasing number of DeFi projects, which unsurprisingly, has had a positive effect on user activity on the Ethereum network. This will keep making its fundamentals strong and might quickly enlarge the ETH ecosystem this year.
Ethereum went through several advancements on its network in the last quarter of 2019. These new developments were brought by a significant software upgrade (hard fork) called Istanbul. Ethereum, into the hard fork, incorporated a second scaling solution and pledged to allow a TPS of about 3,000 transactions per second. The best part is, plans are being made to develop the scaling solution further.
Ethereum, together with most cryptocurrencies in the market, has coped to eclipse every critical resistance level set by bearish sentiments due to the significant fear of instability in the crypto market. Nevertheless, market pundits are asserting that Ethereum could be up to something outstanding this year.