Ethereum Further Consolidates in Bullish Region After Rally
Ethereum (ETH) has continued to consolidate in a bullish region after a tremendous 84.38% rally during the past month.
Recently, the second-largest cryptocurrency was trading at $428.90. This has been its highest since August 2018.
Most of the current rally was due to the rise in the popularity of DeFi projects. These were, for example, Yearn Finance and Chainlink. These two are both based on the Ethereum blockchain.
Then, decentralized exchanges, like Uniswap, also drive up the volume on the Ethereum blockchain. With that, this gives another use case for the platform.
According to a previous report from Coin Rivet, this has caused Ethereum transaction prices to surge. This in itself has the capacity to be impactful to price action.
Due to the volatile price movements in a bull market, traders and investors typically flip various coins. Thus, things became increasingly challenging when transaction fees and durations were high.
And this has been the reason for the severe price hikes recently for Ethereum. The lack of scalable transactions means investors will resort to pouring fiat currencies into investments. This is as opposed to waiting for confirmation on the blockchain.
In a technical view, as long as Ethereum trades over the $405 level of support, it stays in a bullish formation on both lower and higher time frames.
Then, if it successfully breaks above $455 in the following days, it might experience bullish continuation to as high as $513.
REN Price Boosts with 10,000 Bitcoin Tokenized
Meanwhile, renBTC, a Wrapped Bitcoin competitor, has made tremendous gains during the last week. The project’s token price and the overall amount of Bitcoin tokenized using the protocol surges.
Ren became second in place behind Wrapped Bitcoin or wBTC. As an aside, wBTC is currently the most popular style of tokenizing Bitcoin for use with DeFi protocols. Based on btconethereum.com, there is roughly 29,000 wBTC on Ethereum. And this is with renBTC accounting for around 9,500, after topping 10,000 on August 17.
Aside from that, while DeFi further gains popularity, more investors are seeking to use their BTC holdings to access yield farming opportunities. A total of 44,000 Bitcoin, or over half a billion dollars, is now on the Ethereum network.
Within a week, the total value locked (TVL) on the renVM platform (a cross-chain liquidity provider Ren) has risen to more than 210%, hitting a new high of $175 million on Defipulse.com.
The native token of renVM, Ren, has also been in a parabolic increase in prices. It surged by 245% from $0.16 at the start of August to $0.55 on August 19.
Samson Mow
Moreover, there are hints that Bitcoin maximalists are growing increasingly uncomfortable with Etherans talking about the amount of tokenized Bitcoin on the network. In a recent podcast hosted by Peter McCormack featuring Ethereum co-founder Vitalik Buterin, Blockstream CSO Samson Mow said the tokenized Bitcoin showed that Etherans needed Bitcoin.
It stated, “The whole reason that Bitcoin is staying wrapped to be used on Ethereum is because it is stable and reliable.”
The podcast also mentioned that this is the reason why Ethereans seem to prefer using wrapped Bitcoin to Ether to do their DeFi stuff.
