Ethereum Upgrade To Boost ETH And Altcoins’ Prices
The upgrade of Ethereum is set to take place by the end of this year, and the community is waiting with much excitement.
Binance just released its latest trading report, and it’s analysing the state of Bitcoin, Etjereum and the altcoin markets.
Bitcoin’s dominance burst the DeFi bubble
The notes are highlighting Bitcoin’s dominance in October and November which seemed to burst the DeFi bubble and pushed the prices of altcoins lower.
“Large-cap cryptocurrencies such as ETH, XRP, BCH, LTC, and LINK delivered modest gains in October, but have failed to break new highs as trading activity shifted away to Bitcoin. For many months, altcoins have been the key driver of returns for crypto traders,” the report notes.
The same report says that “Thus, it is no surprise that altcoins have appeared to be losing steam and disharmonized from Bitcoin’s rally… Since the correction in early September, most DeFi tokens have displayed a complete turnaround, erasing 70-90% of their gains.”
Binance analysts are expecting Bitcoin to enter a cooldown period after its burst to $16k.
The analysts also pointed to BTC’s consolidation range in the $10k and $12k region as an example of what’s to come next for the king coin.
Ethereum 2.0 will boost the altcoin market
Regarding the future of the altcoin market, the report notes that the launch of Ethereum 2.0 will boost the price of ETH and the altcoin market at large.
“The upgrade is expected to have a positive impact on ETH as it will significantly boost the network’s compatibility, scalability, and security,” according to the notes.
The report also says that “Additionally, the upgrade will shift Ethereum’s consensus mechanism to a Proof-Of-Stake, incentivizing investors to keep and lock-up their Ether for staking rewards. This will then reduce the supply of ETH tokens while demand continues to grow strong as large investors flood in seeking steady gains…”
This upgrade could bring ETH out from the “recent slump” and inject massive positive sentiment in the altcoin sector.
We recommend that you check out the complete report.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.