Ethereum rallies by more than 11% from slump

After a dismal showing for most of the altcoins the past week, Ethereum (ETH) is getting back on its feet.

The plunge that the crypto market has experienced last week saw the second-largest digital currency by market capitalization record a significant fall to trade below the $2,100 level. But the altcoin seems to have recovered as it gained more than 11% for the last day on top of its nearly 10% growth last week.

It is now trading near the $2.5K mark and has gotten over its own slump, along with other virtual currencies.

Still the leader in smart contracts

The current resurgence of ETH is largely because it still remains as the go-to-chain for smart contracts and DApps.

Competing chains in the Decentralized Finance (DeFi) ecosystem was not successful in unseating the Ethereum network, with the supposed ETH killer, Binance Smart Chain, having scalability issues. Because of this, interests in Ethereum, as a whole, saw a reset.

In addition to that, the Berlin Upgrade for ETH went live before the market crash. While the upgrade’s effect was not felt during the downfall last week, the current resurgence proves the positives that the improvement brings to the overall protocol.

Ethereum 2.0 fuels the run

The total deposits made into the network’s Proof-of-Stake (PoS), Ethereum 2.0, has also fuelled the current run the digital currency is making.

The valuation of deposits passed through the $9 billion mark and is seen as very important to the health of the whole network. It signifies that stakeholders are positive and confident in the future of the network, and as proof, they are duly investing in it.

The boost did not only help Ethereum (ETH) recover from its fall, it also made the second-largest cryptocurrency poised to surpass its all-time high of $2,600.

 

Image courtesy of David McBee/Pexels

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