1. Driven by the overall market rise, follow the trend of Bitcoin price.
Bitcoin has always been the leader of the cryptocurrency market, and when the price of Bitcoin rises, other cryptocurrencies usually follow suit. Ethereum, as the second largest cryptocurrency by market value, will also rise due to the rise in the price of Bitcoin.
1. Ethereum 2.0 upgrade brings higher transaction speed, lower transaction fees, and higher network security and scalability. Ethereum 2.0 introduces two major improvements: Proof of Stake (PoS) and Shard Chains. Proof of Stake (PoS) is an upgrade that brings higher security, scalability, and energy savings. PoS stipulates that everyone can freely become a node, but only those who pledge a certain number of token nodes are eligible to become validators. After becoming a validator, the system will select a part of people as block nodes through an algorithm, and reselect them every once in a while. PoS does not rely on physical miners and electricity, but on validators (virtual miners) and ETH (ETH2) deposits. Shard Chain is a scalability (capacity expansion) mechanism that can greatly improve the throughput of the Ethereum blockchain. Shard Chain is a mechanism to "split" the Ethereum blockchain, which can assign data processing responsibilities to multiple nodes. In this way, transactions can be processed in parallel instead of continuously. Each shard chain is like adding a new lane, upgrading Ethereum from a single lane to a multi-lane highway. More lanes and parallel processing result in much higher throughput.
1. Market sentiment is optimistic, and investors are full of confidence about the future of the cryptocurrency market. Against the backdrop of global economic recovery, the preference for risk assets has increased. Recently, market sentiment has been relatively optimistic, and investors are confident about the future of the cryptocurrency market. As the global economy gradually recovers, investors' preference for risk assets is also increasing, which has also boosted the prices of cryptocurrencies such as Ethereum.
1. The participation of institutional investors has made Ethereum the preferred platform for the implementation of smart contracts by institutional investors. In recent years, more and more institutional investors have begun to enter the cryptocurrency market, bringing more funds and resources, which has driven the development and maturation of the market. The participation of institutional investors is also one of the reasons for the rise in Ethereum's price. As the chosen platform for many valuable projects, Ether has become a strong trading currency within the Ethereum ecosystem. Institutional clients' interest in Ethereum is growing, which is related to investors' perception of the value of the Ethereum network. For example, it is the native currency of the network. Since Ethereum has always been the preferred platform, as the backbone of many valuable projects, it has always needed to provide the power for transactions on the Ethereum network. The report states: 'We have cases for Ethereum, including: first, its continuously evolving potential as a store of value; second, its status as a digital commodity, which is necessary to power transactions on its network.' Some investment institutions, like Coinbase and Gemini, have an incredibly bullish outlook on Ethereum. In addition, an increasing number of large investors are looking for different decentralized financing spaces. Institutions are increasingly interested in the tokenization of real-world assets, and Ethereum has become the preferred platform for the implementation of smart contracts.
