ETH surged 9.7%, is the cryptocurrency market finally getting bullish?

"One arrow pierces the clouds, and thousands of troops rush to meet us!"

At around 6:30 am Beijing time on July 23, in just 10 minutes, the price of the second largest cryptocurrency ETH (Ethereum) soared from US$245 to US$269, an increase of 9.7%.

This is the highest price of ETH since February. In March of this year, after the new crown epidemic swept the world, the global asset market suffered a major blow, and ETH also experienced a sharp drop, falling to a low of US$95.

Driven by ETH, mainstream cryptocurrencies such as BTC and BCH have also experienced a wave of growth, which is particularly important after the cryptocurrency market has been sideways for eleven weeks.

DeFi continues to be hot, and some market participants believe that the value of ETH is underestimated

In the past two months, the concept of decentralized finance (DeFi) has become increasingly popular, and related DeFi tokens have also experienced explosive growth. However, ETH, which is the basis of DeFi, has not appreciated, which has puzzled many participants in the industry.

However, some industry insiders believe that the current value of ETH is underestimated. Before ETH surged today, Bankless partner Ryan Sean Adams expressed his opinion:

“The demand for ETH from Staking+DeFi is much greater than that from ICO. It’s ridiculous that ETH is only $243 now.”

This represents a common view among Ethereum enthusiasts, who believe that DeFi’s impact on ETH is positive.

Ethereum 2.0 mainnet launch is approaching, will market expectations lead to a surge?

Of course, there is another voice in the market. They believe that the sudden surge in ETH may be related to the launch time of the Ethereum 2.0 mainnet. Just yesterday, a developer said that the final testnet of Ethereum 2.0 will be launched on August 4, and the mainnet may arrive as early as November 4.

Of course, this news was actually reported as early as yesterday, and it seems that ETH’s short-term outbreak is not that closely related to it.

In addition, it is worth noting that early this morning, the U.S. Office of the Comptroller of the Currency (OCC) issued an announcement stating that it has allowed federally chartered banks to provide crypto custody services to customers. This is a positive signal and it is of great significance for the further expansion of the market.

Global central banks continue to release money, which may further boost investor confidence

Recently, the European Union announced the launch of another round of 857 billion euro economic stimulus plan. In addition, the Federal Reserve will also follow up with a 1-2 trillion US dollar economic stimulus plan. These "floods" have caused shocks in global asset markets. In traditional markets, silver performed strongly at the opening of this week. As of press time, silver assets have risen by 19.25% this week, and gold prices have continued to rise, reaching a new high of $1,874 today.

Obviously, these economic stimulus plans have had a significant impact on investor behavior, and Bitcoin has similar properties to gold. Therefore, some market observers believe that some funds will flow into the cryptocurrency market, but for now, this seems to be just wishful thinking on the part of investors.

Will the market usher in a big bull run next? Or is it just a flash in the pan? Feel free to share your thoughts.

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