Decentralised Finance (DeFi) is reshaping digital payments and ecommerce, of which most projects are currently powered by the Ethereum network. ETH 2.0, Ethereum (ETH) futures and increasing institutional attention are just some of the many factors that have led many blockchain enthusiasts to feel optimistic for the future of Ethereum and the blockchain industry.
Since Ethereum’s launch, it has continued to make significant progress and is the second largest cryptoasset by market capitalisation. One metric of Ethereum’s success is its price per unit which is now moving at its new All-Time-High (ATH). However, many are beginning to ask how the successful blockchain protocol plans to address and manage their scalability capacity moving forward, especially during periods of high demand. Scalability considerations for the Ethereum network are only exacerbated by the effects of having an array of projects built and supported on their network.
Meanwhile, Ethereum continues to experience massive daily trading volumes, with the networks native cryptocurrency seeing $25 billion in daily transactions, five times the total of the next leading cryptocurrency by market cap, Binance coin (BNB), at the time of writing.
DeFi accounts for a large portion of the network. Despite the high gas fees on Ethereum, most projects still opt to build and develop on Ethereum’s ecosystem using the ERC-20 token standard. Ethereum have Implemented layer two solutions to begin the task of improving network flexibility and scalability.
Additionally, more interest from institutions in general is also taking effect. As stated by a Deloitte study on blockchain developments, blockchain is a top-five strategic goal for businesses. As a result of its established decentralised and open-source characteristics, interest in the Ethereum platform is an increasingly promising prospect with companies pursuing innovative methods for protection against future inflation.
The results of a highly successful futures market for Bitcoin (BTC) have seemingly seeped similarly into Ethereum, with corporate interest playing a key role. These factors continue to fuel market activity for those who Buy and Sell Ethereum. Following the introduction of the CME Ether Futures contract, investments from institutions now have a resource to participate and access cryptocurrency markets using regulated apparatus.