Ethereum (ETH) price jumped to over $300 in a major rally as the Ethereum network sees a significant surge in daily transactions. The price rally comes as the developers plan to launch the Ethereum testnet on August 4.
The massive surge in the DeFi activity on the Ethereum blockchain network has ultimately pushed its price higher. The Ethereum (ETH) price has surged over 9% in the last 24 hours. At press time, ETH is trading at a price of $309 with a market cap of $34.6 billion.
With this, Ethereum has hit a new 2020-high recovering all its losses of the March 2020 market crash. Over the last month, the Ethereum (ETH) price has surged by more than 25%. In fact, a majority of this price rally has happened just over the last week. Thanks to the sudden surge in the DeFi activity which propelled the bullish sentiment.
The latest surge in the Ethereum DeFi activity pushed the Ethereum transactions to its all-time high. Earlier this week, the Ethereum network executed over a million Ethereum daily transactions. Currently, DeFi applications on the Ethereum blockchain hold more than $3 billion worth of funds on the platform.
The top-three DeFi platforms on the Ethereum network are Maker, Aave, and Compound. Each of these platforms has contracts worth $875 million, $639 million and $616 million respectively.
Ethereum Price Moves Higher with ETH 2.0 Development
Despite the DeFi activity surge started a few weeks back, the ETH price was seen more or less consolidating above $230 until last week. As said, a majority of the Ethereum price rally comes in over the last week. In just one week, ETH’s price has jumped over 25% as bulls take the charge.
Besides, the ETH/BTC price is also showing good strength. Data also suggests that Ether’s price as a percentage of Bitcoin has jumped to new highs.
As the daily transaction of the Ethereum platform surge significantly, the need to soon launch the ETH 2.0 blockchain grows higher than ever before. The existing Ethereum network can process only 15 transactions per second. With ETH 2.0, this will jump to 1000s of transactions every second.
The ETH 2.0 platform with the PoS model addresses the issue of scalability to a large extent. The Ethereum developers have also accelerated their development with the ETH 2.0.
As per the latest report, the ETH 2.0 final testnet launch is scheduled next month on August 4. Danny Ryan, the ETH 2.0 project co-ordinator said:
“There is a little bit of stability work going on and other than that the blocker is some UX things (trying to make key management as close to mainnet as possible). I expect we announce a date Monday/Tuesday.”
If the testnet launch remains successful, we can expect the mainnet launch by November 4, 2020.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
