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Bitcoin price hits new all-time high
In November, the prices of many encrypted assets rose sharply, and the encrypted asset market was full of joy. On the Binance platform, Bitcoin soared from below $14,000 on November 1 to $19,888, hitting a record high and becoming the biggest hot spot. The rise is yet another milestone for bitcoin, which has brought its total gain to 42% in November. Despite the significant price gains, Bitcoin market dominance has failed to hit new all-time highs for the year and remains at 63% as of today. Due to the sharp rise of non-bitcoin currencies during the same period, the market dominance of bitcoin failed to continue to improve. Under the tail effect of Bitcoins success, non-Bitcoin currencies with high market capitalization have also achieved quite impressive performance, allowing investors to have different investment options and diversify their investment portfolios. As a result, the entire crypto-asset economy has expanded significantly, with market caps crossing the $560 billion mark.
Ethereum, the second largest encrypted asset by market value, also had a phenomenal performance in November, with its market value rising by more than 59%. ETH 2.0 staking mining has attracted a large number of participants, further promoting the bullish sentiment on Ether. After the official launch of ETH 2.0 on December 1, it began to wash up, and the price entered a high level of volatility. Within a few minutes, ETH fell from $635 to $560, a drop of more than 11%, staged a textbook-level sell on the news (that is, arbitrage exit when the official news was released). Ether price has since recovered and is currently in the $590-600 range. Since the beginning of the year, the price of Ethereum has risen by more than 350%, and its market value has exceeded 65 billion US dollars.
Bitcoins 2020 rally has taken many smart investors by surprise. Since the craze for encrypted assets faded in 2017, Bitcoin has faced a lot of criticism, mainly from conservatives in the traditional financial field. Today, various institutional investors, including some well-known fund managers, have gradually accepted and started investing in Bitcoin.
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After ETH 2.0, what awaits Ethereum?
Just as Bitcoin was grabbing the headlines, another big event happened, and this one could have a major impact on the entire crypto-asset economy. This transformative event is Ethereum 2.0.
The purpose of the ETH 2.0 upgrade is to improve the Ethereum network in three important areas: compatibility, scalability, and security. In addition, the Ethereum consensus mechanism will also be transformed into a proof-of-stake mechanism, which will stimulate investors to participate in Ethereum staking mining. After meeting the recharge threshold requirements, the first part of the entire Ethereum 2.0 upgrade, also known as Phase 0, was officially launched.
After completing phase 0, the next step is to create the shard chain. This will be a major upgrade, expected to go live in 2021, and after the upgrade is complete, the speed of the Ethereum network will be improved. In phase 1.5, ETH 1.0 and ETH 2.0 will transfer all users and assets to the new network while maintaining the existing operation, which has never been implemented on a large scale.
Since one of the purposes of this Ethereum upgrade is to enhance the feasibility of consumers, its use cases will increase significantly after the upgrade. But because of the need to migrate existing dApps and developer flows to the new network, the upgrade will take months or even years to complete. Therefore, users may not feel the changes brought about by the upgrade immediately. However, the impact of this upgrade is long-term. Enterprises and developers will not immediately start running at full scale on the new network, but will gradually verify and build confidence in the new system. As a result, the use of new networks will also slowly increase.
