Why is ETH (Why is ETH recently falling)

Why is ETH? Editor’s note: This article is from, Odaily Star Daily authorized reprint.

With the advancement of ETH 2.0, many different applications and projects have appeared in the Ethereum ecosystem, but they are not from the same project or two different protocols.

We know that there are many Ethereum-related protocols in the market, such as EOSIO (Ethereum Classic), Bitcoin Cash (BCH), RippleNet, and so on. So why does ETH become the first public chain to adopt this mechanism? At the end of 2017, the founder of Eth, Vitalik Buterin, used the name “TheTimes03/Jan/2009” to describe its blockchain architecture. This name originates from his blog post, “After more than 5 centuries from 2009 to 2014, ETH has undergone tremendous development.” He said, “When I first heard about ETH 2.0, I thought it was a good idea.” But then a problem was discovered, that is, because ETH 1.0 does not support smart contracts, it cannot run. “So I wrote this kind of thing in early 2016,” he replied on Twitter. “Because it made me feel like a joke,” he added:

Now ETH’s price has reached around $4, which is very considerable compared to its previous price of less than $20—if calculated based on today’s market price. Therefore, when you convert ETH into ETH, you will find that it is indeed very cheap and can reach more than 10 times, or even lower. However, if you convert ETH to BTC or ETH, you may have no reason to believe that ETH will fall to more than $2. In fact, this does not mean that people are skeptical about ETH 2.0, but rather that they are not optimistic about the prospects of ETH 2.0 and even do not know how it works, and believe that ETH 2.0 will not be launched at all. This is why the ETH team uses this technology for various purposes, including decentralized finance, such as payment transaction settlement and decentralized lending platforms, as well as infrastructure for network security. What is ETH? ETH is an open-source network that anyone can develop on and has its own client, so it can achieve all ETH-based functions and features, thereby providing security for the entire network. Through these services, users can maintain the network by using Ethereum software and increase the level of participation of others. The main value of ETH is that it has a high resistance to censorship; it can be widely used to verify transactions and execute the complete state of block confirmation.

Why is ETH recently falling?

ETH has been falling recently. From Ethereum 2.0 to now, almost all mainstream currencies in the market have experienced similar situations in the past year and a half. However, there is still a problem with Ethereum: Can transactions be made between smart contracts and wallets on Ethereum? This depends on the development of the project and how its technological strength affects these projects.Danny Ryan, researcher at the Ethereum Foundation, said, “When we see more and more applications running on the Ethereum blockchain, we will find that many applications are managed by users, and this management does not mean that you own a specific function or asset.”He believes that “with the development of the Ethereum ecosystem, some DeFi protocols will become its core part. If people use Ethereum as collateral, they will get more benefits, thereby increasing the demand for network security.”In addition, according to data from TheBlockResearch, in the past 24 hours, the total locked value (TVL) of DeFi protocols has increased by more than $10 billion. “Although I don’t invest in ETH, I believe that due to the network effect of Ethereum, we will soon see more people entering this field, because this is an important advantage of Ethereum,” he explained.”The cost of creating DApps on Ethereum is much lower—in decentralized exchanges, for example, or DEXs like Uniswap—they must consume a lot of energy to maintain their operation, so for ordinary investors, this requires a lot of time and effort and there are very high risks.” He said. He also added that if certain service providers in DeFi protocols become too strong, lack liquidity, and cannot bring additional income to their business, “then they will definitely not do so.”Meanwhile, the balance of the Ethereum 2.0 deposit contract address has also reached a new high, reaching 147,000, which is a new low for the year; however, this number is still lower than the record high set in December 2018. (TheDailyHODL)