Starting from ETH2.0 phase 0, together with the announcement from CME Group to release Ether(ETH) futures, ETH has been in a bullish momentum, despite the Bitcoin correction. According to Coingecko, ETH broke its ATH at US$1,558 today, but what are the factors causing this surge?
The total value locked in DeFi grows rapidly, from US$15 million on 1 January to US$30 million today, also we can discover that the average Ethereum transaction fee is up 400% from US$3 to US$16, indicating the increasing demand on DeFi. Furthermore, almost all DeFi protocols are based on Ethereum, if traders would like to do any actions in DeFi ecosystem, they must own a certain number of ETH, thus it may be one of the factors causing the surge.
Moreover, the development of NFT may also be the reason. According to Dappradar, NFT generated $3 million profits in December 2020, and rose to $33 million after a month, suggesting that the participation of collecting NFT has increased, given that most of NFT requires ETH to make the bid.
Lastly, it is known that the staking of ETH before the start of ETH2.0 phase 0 was out of expectation, reaching 152% on 28 November 2020. In November, the price of ETH has grown 60% from US$386 to US$616, hence we can deduce that ETH has enormous potential for the uptrend before the launch of ETH2.0.