On the afternoon of the 29th, the market price of cryptocurrencies such as Bitcoin is continuing a strong rally. While the crypto winter has begun due to the Terra-Luna incident and the strong inflationary impact is still there, it is evaluated that it is showing a solid foundation. Most of all, it is said that some of the uncertainty over fiscal tightening has disappeared due to the US Fed’s limited rate hike.
The flow of Ethereum is unusual. Currently, it is showing a price of 225 million won and is rebounding.
Ethereum was created in 2014 by Vitalik Buterin, a Canadian immigrant from Russia. If the existing Bitcoin symbolizes the first-generation cryptocurrency, Ethereum can be seen as a platform that supports smart contracts, the core of the second-generation cryptocurrency.
The first good thing is also the update. Ethereum successfully completed its London hard fork last year. A hard fork is a concept in which new functions are added or the underlying blockchain is abandoned and mounted on a new blockchain infrastructure. This is why the fate of cryptocurrencies depends on the success or failure of a hard fork, unlike a soft fork, which is only a general update and does not change the blockchain.
The 2.0 update is scheduled for September.
The Ethereum Foundation announced on September 19th that the consensus algorithm will be switched from proof-of-work (PoW) to proof-of-stake (PoS). This means that it is convenient to expand the ecosystem and explore various possibilities. Some criticize it for being too engrossed in staking and deviate from the block chain decision-making structure, but it is now possible to popularize the Ethereum ecosystem and it is working as a good thing.
It doesn’t stop here. This is because the mainnet shadow fork was successful. As the merging of Ethereum testnets Goerli and Prater is proceeding smoothly, market expectations are growing.
The basic market’s belief in Ethereum, which overlaps with popularity and merge issues, is also strong. Chainalysis, a blockchain data analysis company, pointed out that Algorand and Solana, which are evaluated as rivals to Ethereum, are not showing clear competitiveness through the ‘2022 Web 3.0 Report – Blockchain Comparative Analysis’ report. It cannot be replaced.”
In the midst of this, Ethereum founder Buterin drew attention by revealing a new NFT concept. This is because he showed the concept of giving souls to NFTs through a paper titled Decentralized Society: Finding Web3’s Soul. Simply put, it is an NFT that belongs to a specific wallet and cannot be transferred or traded. While it is different from the general concept of NFT, it maximizes the scarcity of NFT and borrows the DID (Decentralized Identifiers) methodology attracts attention. It can be seen that this non-facing flow also has some influence on the enhancement of the value of Ethereum.
Of course, in the big picture, it is not allowed to be vigilant. North America’s largest bitcoin miner, Core Scientific, sold a large amount of bitcoin last month, while 3AC (Three Arrow Capital) eventually went into liquidation, and it remains to be seen whether additional bankruptcies are coming from other lending platforms. is erecting Even OpenC, a global NFT exchange, is announcing a 20% reduction in staff.
The global macroeconomic situation is also bad, and it is certain that interest rate hikes will continue within the year. Bitcoin, as well as major coins such as Ripple, Zilliqa, and Sandbox, are currently in a rally, but it is analyzed that there is a high degree of opacity thereafter. Of course, it is said that a conservative approach is necessary as Ethereum can also be caught up in a similar trend.
Meanwhile, while Ethereum has started to surge, Ethereum Classic, which is not related to Ethereum, is literally on the rise.
Unlike the current Ethereum, which was created through a hard fork after the so-called DAO hacking incident in June 2016, Ethereum Classic was suddenly listed on the exchange Poloniex in July 2016 and turned the market upside down. However, there is no contact point with Ethereum, and Buterin does not support Ethereum Classic.
Nevertheless, Ethereum Classic has been running wild whenever there is a good news for Ethereum. This seems to be because small investors mainly invest in Ethereum Classic, and the flow of investment itself is in line with Ethereum. However, the general consensus is that if Ethereum declines, it will fall more sharply, so investors should be careful.
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