What Are The 3 Factors That Drive the ETH Price To Record?

Ethereum (ETH) price hit the $ 1,400 level on January 19, and set a historic record. So what are the 3 factors that drive the ETH price to the record? Here are the details .. Ethereum (ETH) price hit the $ 1,400 level as of 5 pm on January 19, breaking the all-time record. Although this record differs to $ 1,440 on some exchanges, ETH has tested its historical highs during the day. Although this record has been broken on the basis of the ETH/USD trading pair, there is still a long way to go for the Bitcoin trading pair ETH/BTC. On the other hand, 3 important factors that brought ETH prices to the record this year can bring the said gain to a more critical level.   1- DEFI The biggest factor that allowed Ethereum to track Bitcoin, which gained over 300 percent in 2020, was the DeFi sector. Decentralized financial applications have entered the sector in recent years, but 2020 was a revolution for these sectors. The total value of the DeFi industry has seen over $ 10 billion for the first time. DeFi has steadily gained in value over a year, not counting the significant loss in September 2020. Ethereum, which hosts most of these applications, has made a significant gain thanks to the transaction fees spent on ETH.   2- Etherium 2.0 Another factor that made 2020 unforgettable for Ethereum was Ethereum 2.0. Based on Proof-of-Work, ETH made its first move to switch to the Proof-of-Stake consensus mechanism. For the ETH 2.0 contract reported in the last quarter of 2020, more than $ 2 billion ETH was collected. The fact that investors will not be able to touch these funds for about 1.5 years is seen as a very important development for ETH in the long term.   3- Bitcoin Bitcoin (BTC) was another factor in Ethereum's rise. Although the correlation between BTC and ETH has weakened recently, this has been seen to continue throughout 2020. While institutional investors turned to Bitcoin when there was uncertainty, ETH also took advantage of this situation. The thesis, which has been used recently was, “If BTC displays horizontal movements, there will be money flows to altcoins”. Especially in recent days, the decrease in the expectation against Bitcoin and the horizontal movement made the investors turn to altoins. In the coming days, if Bitcoin is at the level of 34-39 thousand dollars, it will ensure that the money flow to altcoins continues. On the other hand, when investing in altcoins, BTC movements should be closely monitored and positioned accordingly.