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I have a deep affection for Ethereum. I bought 2,800 for the first time, and then it skyrocketed all the way to 10,500. At that time, the ether in South Korea was more than ten percent higher than that in China, and the highest point was RMB 15,000. I was just a small porter at that time. Buy ETH every day and then sell it on the Korean exchange. The highest price of Ethereum was about 7.2% of the highest price of Bitcoin, and now Ethereum is only 2.3% of the price of Bitcoin. However, Ethereum has been enjoying continuous benefits recently. It is said that the Central Bank of Russia will launch a blockchain digital mortgage loan platform, which is based on ETH. This is not 2017, we are not in a bull market. But Ethereum usage has reached an all-time high. With daily gas usage exceeding 60 billion, Ethereum’s blockchain space demand is unprecedented. Ethereum’s daily active addresses also reached 380,000, a new high in two years.  After Ethereum, other decentralized application platforms using ETH as a blueprint have emerged in the industry (the most influential ones include EOS and TRON). However, Ethereum firmly occupies the dominant influence and position in technology development and commercial applications, embarking on a path of all-round and all-field ultimate evolution similar to AlphaGo, including but not limited to: ● Leader in blockchain technology innovation Rapid and stable iteration is always the ultimate weapon for technological evolution. Ethereum adheres to the engineering philosophy of "rapid iteration". From the beginning of the project design, it has been determined that the protocol will be continuously upgraded as planned to ensure the optimal configuration of security, availability, functionality and decentralization. Ethereum's outstanding technological innovations include cutting-edge technologies such as smart contract technology, sharding technology, Plasma and Roll Up expansion technology, and Layer 2 solutions. The initial version of the network is Olympic, which is divided into four upgrade stages, Frontier, Homestead, Metropolis and Serenity. The first three stages are ETH1.0, and the final stage: Serenity is ETH2.0. Among them, ETH2.0 refers to the transition of Ethereum from the POW consensus mechanism to the POS consensus mechanism through a series of technical upgrades. Its core technology is sharding technology, which will greatly improve the processing capabilities of the entire distributed system. The main historical upgrade events of Ethereum are as follows:  Ethereum’s major historical upgrade roadmap, BlockVC The current Ethereum is similar to AlphaGo, which stayed in the laboratory stage before 2015. Although it has not yet entered the world stage, it has shown unlimited evolutionary potential and will surely shine in time. ● The leader in enterprise blockchain implementation The implementation of Ethereum-related technologies in the enterprise field is mainly carried out through the Enterprise Ethereum Alliance (EEA). The latter is a global industry standards organization promoted by alliance members. It is supported by ConsenSys, the Ethereum development organization, and aims to empower Ethereum blockchain technology and make it an open and trusted standard. As of now, EEA covers more than 3,000 global developers, covering more than 45 countries around the world (including 46% North America, 31% Europe, 19% Asia, and 4% other regions), more than 300 companies, and more than 15 member organizations, including well-known corporate institutions such as Intel, JPMorgan Chase, Microsoft, and IC3. In terms of industrial structure, banks or financial companies account for about 24%, blockchain companies account for 5%, encrypted digital currency projects account for 17%, non-profit institutions account for 15%, academic research institutions account for 11%, and others account for 28%.  Some of the key members of the EEA, the EEA ● DApp ecological empire pioneer The Ethereum network is a permissionless public blockchain that enables developers to create trusted and decentralized applications (DApps) through smart contracts, including cryptocurrency wallets, financial applications, decentralized markets, games, and more. It can be seen from the distribution of DApps that DApps on ETH are mainly distributed in games, lottery, high-risk applications, exchanges, finance, tools, platforms and other fields. Among them, the number of DApps in the game field accounts for nearly 50%. The number of active accounts on the entire network has reached 6494.14K, and the number of potential accounts has reached 52959.63K, ranking first among similar platforms.  DApp distribution of ETH, DappTotal.com It is worth noting that DeFi is booming on the Ethereum network. According to data from the intelligence tracking website Defipulse, the value of locked assets in Ethereum has reached a record high, reaching $779M, of which MakerDAO’s locked assets account for more than 56%. MakerDAO is a lending platform that also provides a way to generate stablecoin DAI through multi-asset collateral (such as ETH). In addition, DeFi can not only significantly increase the lock-up rate of ETH, but also provide an alternative channel to open up the traditional financial market, which may greatly accelerate the integration of the entire crypto asset industry with traditional finance in the future.  Locked Funds for DeFi in Ethereum, Defipulse.com ● Ethereum, a practitioner of global economic payment and settlement, is becoming the payment and settlement layer of the global economy. Its native token ETH has the ability to conduct payment settlement, value storage or collateral on a global scale. With the further improvement of Ethereum's processing capabilities, it will even have high-frequency small payment settlement capabilities. In addition, if users choose to pay with stablecoins in order to prevent the price fluctuation of ETH, the Ethereum network can also provide diversified payment options. One of them is on-chain asset-backed stablecoins including DAI. ； Second, a large number of legal stablecoin projects are migrating to Ethereum. Among them, USDT has migrated more than 4 billion US dollars of stablecoins from the Omni protocol to the Ethereum network. From the perspective of users' global transfers, Ethereum-based payment methods have unparalleled advantages in large-value payments. When users make cross-border payments through traditional cross-border payment methods such as Visa or PayPal, not only may it take up to a week, but the payment fees are positively related to the payment amount. If users make global cross-border payments through Ethereum, even if the transfer amount reaches a huge amount of US$1 billion, the payment time will only take less than a minute and only require a payment fee worth about US$5. Blockchain technology represented by Ethereum provides a revolutionary solution for cross-border payment and settlement in the global economy.  Comparison of various cross-border payment methods ETH is undervalued However, as a representative star project of the second generation blockchain, Ethereum has created and applied smart contracts, an epoch-making blockchain technology. The true value of its native asset ETH has been underestimated by the market, mainly reflected in: ● Undervalued compared to BTC Observing the price curve of ETH/BTC, we can find that ETH has been in a downward trend for a long time in the past year. However, since September 2019, the price of ETH/BTC has stabilized and has rebounded with heavy volume recently.  ETH/BTC price curve (2018.12.10-2020.01.15), CoinMarketCap Compared with BTC, the market value of ETH has reached approximately US$24.2 billion, accounting for approximately 13.9% of the market value of Bitcoin. It ranks second in the market value of global encrypted digital currencies. The number of active addresses in the entire network has reached approximately 311.6K, accounting for approximately 36.6% of the number of active addresses in Bitcoin. Assuming that the unit network values of the two are similar, the market value of ETH is undervalued by the market and is significantly lower than the scale of its active network addresses.  Number of active addresses on the entire network of Bitcoin and Ethereum, Coinmetrics.io From the historical data of the market rise, according to data from the cryptocurrency exchange Binance, on December 10, 2018, BTC and ETH simultaneously reached their lowest points in history since 2017, respectively 3149USD and 81.79USD (standard value), and have been rising ever since. It rose and reached a high on June 24, 2019 (14,000USD and 362.5USD respectively). It has now rebounded to 8,660USD and 162USD after falling back. The highest increases in the past year are 444% and 442% respectively. The current increases from the lowest point are 275% and 198% respectively. Obviously, BTC and ETH have diverged in the recent rebound. ETH's increase is not as high as BTC's, only 72% of the latter. Obviously, compared with the previous round of historical data, ETH still has huge upside potential. ● Undervalued compared to similar smart contract platforms In the market performance of native digital currencies on similar smart contract platforms, the value of ETH is also greatly underestimated. Comparing the basic data of the network ecology, as of now, the number of DApps created on Ethereum far exceeds that of the same type of blockchain platform, reaching nearly 4 times the number of DApps on the EOS and TRON platforms.  Comparison of the total number of DApps for ETH, EOS and TRON, DappTotal.com However, according to the NVTV model (Network Value to Token Value Ratio) proposed by the venture capital company Placeholder, which is analogous to the traditional P/E valuation model, this model uses EOS as the standard. After comparing the market performance of similar projects, it can be seen that the value of EOS is about 100 times higher than the indicator of ETH. The latter only trades at about 2 times the token value, while the former trades at as much as 234 times the token value. This model fully shows that ETH is significantly undervalued compared to similar smart contract projects.  Network Value to Token Value (#NVTV ratio) model, Placeholder Outlook From a simple supply and demand analysis, we can find that the price change of ETH directly depends on the supply and demand relationship, that is, the less ETH circulating in the entire ecosystem, the more conducive it is to the release of ETH value. According to the development trend of Ethereum, it can be determined that the following reasons will reduce the amount of ETH circulating in the trading market, including but not limited to:
In the blockchain industry, the Matthew Effect will still apply. Due to the homogeneity of functionality and application fields of smart contract platforms, the competitive trend of "the strong will always be strong" will be further promoted. On the road of rapid evolution driven by open source, Ethereum's strong technical strength, highly active and cohesive community, and extensive application capabilities will form a huge "siphon effect" on a large number of similar platforms in all aspects, comprehensively strengthening Ethereum's strength in community influence, technology development strength, and capital accumulation. In the current competitive landscape, Ethereum’s victory is almost certain. The only difference is whether this moment will come now or in the future. Mr. Ma•Quotes Bitcoin BTC: There is still a relatively strong upward trend. Next, we will focus on the short-term pressure level of 9650. If the level is broken, it may go straight to 9800, and then break through 10,000. Ethereum ETH: I was telling everyone a few days ago that Ethereum is relatively strong. I opened a long order from 202 and got it now. If it is spot, it is recommended to continue to hold it, or you can open a short long position.  ∞∞∞∞∞ Scan and invite you to join the blockchain exchange group.  |
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