In recent months, the crypto sector has managed to carve out an important space for itself in the preferences of savers: in fact, despite a context characterized by fairly turbulent financial markets, digital assets have shown good resilience and in some cases there has even been that decorrelation from traditional investment classes that many insiders have been waiting for. In a well-tuned underlying sentiment, an underlying asset that has stood out beyond all expectations is the Ether token: the reasons for this trend are not to be found exclusively in the technical price setting, but above all in some fundamental factors. In particular, it is possible to analyze the different aspects that have influenced the quotations of the asset in this phase on Ethereum-news.it, new news site of the ethereum cryptocurrency, edited by a group of professionals in the field.
Ethereum: from good results to future expectations
Before launching into hypothesis on a near future, in which Ethereum is a candidate to become the virtual currency of reference in place of the more famous Bitcoin, it is appropriate to investigate some specific situations that have had direct consequences on its shrinking offer, inflating its value. If a first factor is represented by staking, a mechanism that, by rewarding the holding of ETH over the long term, in fact congests part of the letter flow on the market, another no less important factor is identifiable with the burning of the tokens: a process that aims to drain the amount of Ethereum that can be purchased, to make the underlying asset more rare and that produces the same effect as staking.
This context has clearly provided a decisive contribution to the good performance of crypto prices, but other effects can be seen in relation to Bitcoin: in particular, in the same period of time examined so far, on the most important exchanges, for the first time ETH has surpassed BTC in terms of volumes traded and at the same time has recorded a strong increase in its dominance – the strength of the capitalization of a cryptocurrency compared to all others, expressed as a percentage-. However, according to the experts at ethereum-news.co.uk, the best scenarios are still in the making: in the industry, in fact, it is now known how the merger between the current platform and the Beacon Chain, expected in the first part of 2022, will bring with it important news.
What’s new in the Ethereum project
With the final transition from the proof of work validation protocol to the proof of stake, the new Ethereum platform will see the light. This network 2.0 will have enormous benefits on the entire infrastructure, as it will improve its performance in terms of scalability of the number of transactions, without affecting the security and speed of execution. All this will be possible thanks to the reorganization of the nodes and the integration of the Ethreum blockchain with others, which will play a fundamental role in the data control processes.
Of course, all the benefits of a technological nature will also have positive effects on the prospects of the asset and it will be up to savers to intercept the opportunities that will materialize in the coming months.
After having identified operational cues of a certain relevance, there are two options to invest in Ethereum: the first one is represented by the direct purchase of the underlying asset on the virtual marketplaces that are matching supply and demand, the so-called exchanges. In this case, after the buying and selling operation, the token must be stored in a digital wallet that can be both hardware and software. The second solution to negotiate ETH is offered by the trading of Contracts for Difference on cryptocurrency: these derivatives replicate the trend of the price of the underlying without owning it directly. Moreover, relying on the short selling mechanism, the investor can build operating strategies even in the presence of downward trends on Ethereum. It is important to underline that between the two methods of access to the market there are differences of a fiscal nature, which can be further investigated on training sites such as ethereum-news.it.
