The price of Ethereum has rose up to an all-time high in the year 2020 as it continues to be dependent on Bitcoin closing for its future growth.
Its popularity has also shaped up due to the decentralized finance and decentralized application token in 2020. The blockchain platform existed since last five years and has been of choice for DApp developers due to its increasing value over the span of years.
Ethereum itself raised over 31,000 Bitcoin (BTC) in its 2014 initial coin offering — worth around $18 million at the time. Now, Ethereum occupies second place in the overall cryptocurrency market cap at around $30 billion, Cointelegraph reported.
Messari indicated that in the past 12 months, over 13 smart contract blockchain projects have raised over $300 million in fundraising rounds. The inherent trust placed in these projects is evident in the amount of capital pouring into their coffers.
“The total addressable market (TAM) for these platforms, which are vying to be monies, is potentially huge. It might make sense for investors to turn to greener Smart Contract Platforms as a hedge against ETH. As for longevity, while funding is a factor for attracting new users and developers, the more determining factor might be the application and developer ecosystem. Composability standards are sticky. Ethereum’s ecosystem is far more robust than others at this point,” research analyst William Withiam told Cointelegraph.
Withiam believes that the growth of ERC-20 tokens and their share of the market cap in the Ethereum ecosystem is a natural process in the evolution of the smart contract platform, the report added.