DeFi Effect: Ethereum Network Grows 25% In 2020, Most Addresses Profitable

Tony "The Bull" Severino

4 years ago

3 mins read

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Ethereum has had a remarkable year thanks to the DeFi explosion. Not since the ICO boom has the crypto asset seen this much demand, development, and network activity. And despite the recent plunge in Ethereum price, addresses have only grown, reaching a new all-time high and growing over 25% in 2020 alone.

Here’s why Ethereum has experienced such unstoppable growth, and why it is likely sustainable for the long-term, unlike the fallout from the initial coin offering fundraising phase.

Ethereum Takes 2020 By Storm, Tops Crypto Market In YTD Returns

The second-ranked cryptocurrency had this year saw development activity soar, and along with it, the asset’s prices. Negative sentiment in 2019 kept Ethereum and other alts from reaching the same highs Bitcoin did.

But this year, its been the other way around. Altcoins have easily outperformed Bitcoin. In 2020 alone, Bitcoin was up over 60% making it among the most successful mainstream investments. However, elsewhere in the crypto market altcoins like Ethereum beat out Bitcoin by a wide margin.

From low to high in 2020, Ethereum had peaked at as much as 275% ROI on the year. The leading cryptocurrency by market cap came nowhere close with less than four times that return.

Ethereum’s price could be in for a much longer, extended rally also. A fractal matching early Bitcoin shows demand for the asset rising and an important flip in support and resistance taking place. After that, the top crypto asset reached $20,000 per token. And while Ethereum may not reach such highs, prices won’t be this low for much longer.

ETHUSD Daily 2020 Year-to-Date ROI | Source: TradingView

Is It Only DeFi Behind The Altcoin’s Unstoppable Growth?

There’s no need to deep dive into what’s driving Ethereum’s substantial growth. The year of 2020 in crypto has been all about decentralized finance and its impact on the future of the industry.

These tokens, are almost entirely built on Ethereum as ERC-20 tokens and utilize the platform’s smart contracts to provide holders with certain benefits. Crypto lending, yield farming, and other creative ways to make cash quick have emerged.

At the center of it all, is Ethereum. Development on the platform has exploded, and hundreds of new users have been onboarded as a result. This has led to a 25% increase in addresses since the start of 2020, suggesting that the underlying network itself is extremely healthy.

The total of new ETH addresses has reached 12 million this year alone, bringing the total to over 46 million and a new all-time high. Interestingly, over 31 million of these addresses are sitting in profit.

The DeFi trend may have caused ETH gas fees to rise to ridiculous pricing, but it shows that demand is high for the cryptocurrency. The asset has been referred to as the “hottest night club in town” that everyone wants to get in. And by the growth of these addresses, more and more people are lining up

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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