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Top 10 all-time highs for Ethereum 2020

Bankless

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10 pictures to see how Ethereum will evolve in 2020.

Original title: 10 Ethereum Charts that Hit ATHs in 2020

Source: Bankless

Text compiled: 0x26

Ethereum's ecology performed well in 2020, and while ethereum prices have yet to reach a 17-year high, almost all other ethereum data have already reached record highs. Ethereum ecology has experienced overall exponential growth since the release of Ethereum 2.0 and the DeFi mobile mining boom. Let's review ethereum 2020 with 10 sets of data.

1. Ethereum network has hit new highs in utilization

Network utilization can be said to be one of the most basic indicators to measure the health of the public chain. Simply put, it represents the user's need to use the block. This reflects people's willingness to actually use (and pay Gas fees for) blockchain.

Simply put, recent demand has reached the limits of Ethereum, and surging demand for Ethereum has leveled off network utilization at the top, and it really can't get any higher...

Whether it's borrowing from Aave or Compound, replacing coins with Uniswap, trading derivatives on Synthetix, initiating DAO organizations, or sending crypto assets to anyone in the world, there's a huge need for a clearing layer for a decentralized economy.

Now Ethereum needs to be scaled up. Either the solution from Layer2, such as optimistic Rollups, or an upcoming update to Eth2. The Ethereum network has reached the upper limit of its block space, and it desperately needs to increase capacity to unlock greater potential.

High hashing rate in Ethereum & NBSP;

Source:The Block

Despite the imminent transition to PoS, ethereum's hash rate has climbed to new highs. In other words, the Ethereum network is more secure than ever. According to The Block, Ethereum has more than 271TH computing power per second, surpassing The all-time high of 240TH reached in September 2018 during The bear market.

Miners are swallowing as much of ethereum as they can before their hardware is braked. But whether communities need to delay the hard bomb again is another question.

Although all the Eth2 phases are working in parallel, which should speed up the release considerably compared to the initial phase 0 launch, moving to the PoS network after 6 months seems a bit difficult.

3. Record open interest in Ethereum options

Source: Source:Skew

Ethereum has close to $1 billion of open interest in options. Although it's still relatively small in the grand scheme of things, it does give us some important information on the web. Nick elegantly describes this aspect in his article:

Just as derivatives initially provided farmers with a hedge against crop exposure, locking in a specific price for their harvest (and providing liquidity for future crops so that they could buy seeds and fertiliser today), the same is true for bitcoin producers -- miners. Roughly speaking, miners can know how many bitcoins they will dig, based on their equipment and assuming a reasonable hash rate. If they want to advance a certain amount of money, they can sell and go long. This means that they promise at a specific date for the price of a particular exchange tokens ーー but they now because this promise and get paid. With this cash upfront, they can fund their operations more effectively.

This chart tells me that Bitcoin miners can now use more sophisticated financial products to hedge their exposure. In theory, this should mean a more stable mining sector. It allows miners to focus on operating efficiently and frees them from the burden of worrying about their unhedged exposure to equipment.

In the same way, the growth of Eum options has enabled the miners' businesses to become more efficient, as they are able to hedge their exposure to volatility and fund their business by selling calls.

In addition, the options market allows traders to express their views more creatively, and by providing more tools for market participants, the options market can naturally support more capital inflows.

4. DeFi users hit a record high

DeFi started this year with less than 100,000 users, but this year it has more than 1 million users, covering all protocols. It is important to note that "the DeFi user in this article calculated the number of unique addresses, so the number of million is subject to error.

In any case, the chart speaks for itself. Interact with DeFi purse number completely vertical rise ーー we know why.

Mobile mining sparked an ecological boom in Ethereum that quickly went crazy. At peak times, new mobile mining projects are being dug every day, and waves of erchi are pouring in, only to be "blanketed" within hours. It's reminiscent of the ICO era, with new tokens being launched every day and promises to bring billions of users into the cryptocurrency space.

Rhythm notes, two pools for the original token liquidity pool. Pulling the blanket is an unethical way for the project side to remove liquidity from the trading pool.

But it's not all bad. Cryptocurrencies open up a valuable distribution mechanism that will have a profound impact on how fair distribution will be done in the future. What's the point? Give ownership to those who provide and create the most value:The user.

Platforms like Facebook, Youtube, Twitter, Uber and Airbnb don't really create value on their own. They rely on individuals and network effects. Everyone who uses these platforms makes it more and more valuable. Whether it's creating video content for the global population or hitchhiking strangers through town, these multibillion-dollar platforms rely entirely on individuals to create value. People don't go to Facebook to read Facebook content, and they don't stay in Airbnb homes.

It's completely dependent on the user.

5. New high total lock volume (TVL)

Source:Debank

Along with the proliferation of wallets, total lock-up volume (TVL) has also seen a massive increase, which can also be attributed in part to a liquidity mining frenzy.

At the start of the year, the lockers in all the agreements were worth about $600 million. Fast forward to the end of the year, and the locked value in the DeFi protocol is well over $15 billion -- an arbitrary 25 times a year. As mentioned earlier, the growth in DeFi value locking was largely due to the liquidity mining frenzy in June and September.

Investors received astronomical passive income returns thanks to Compound COMP tokens, and capital poured into the nascent (and sometimes unaudited) DeFi protocol.

6. DEX volume hit a new high

Source:The Block

The rise of decentralised trading platforms (DEXs) is one of the most dramatic developments of recent years. While it has always been a potential use case for Ethereum, they have historically not worked as intended. Cumbersome interface, slow trading speed, and a host of problems plagued DEXs, the first Ethereum. If you understand, you may remember the EtherDelta (good for) ーー can be understood as the earliest Uniswap trading counterfeit currency.

We've come a long way since then, and things have changed dramatically.

With the DeFi craze, DEX's volumes soared in 2020, peaking at $25 billion in September alone. More interestingly, these cryptocurrency trading platforms have made significant progress, as DEX's market share of trading volume peaked at 15% of the centralised platform, a huge leap from its average of 1% in 2019. Uniswap, Curve, and Balancer are key drivers in this area.

AMM accounts for nearly 60% of all DEX content. The field has made significant progress over the past few years and it is promising to see DEXs truly compete with centralized trading platforms in the future.

As a result, industry giants such as Coinbase and Coinbase have seen DEXs start to eat into the market, and the pace of new scrip launches has accelerated dramatically. This was evident at Sushi's launch on the same day as Coinbase, the latest LAUNCH of GRT.

7. Bitcoin hits all-time high on Ethereum chain

Source:Bitcoin in Ethereum

More than $330 million of Bitcoins now circulate in the Ether economy, or 0.675 percent of all existing bitcoins.

Like the other DeFi, this figure went up in a crazy parabola due to the liquidity mining frenzy of the time. People can no longer sit around sitting on their Bitcoins. Instead, they chose to take advantage of any of the dozens of high-yielding passive income opportunities offered by DeFi to do so. It became too good to resist.

Whether it's becoming a liquidity provider on Curve or Uniswap, or putting it into a Compound or Aave platform, the decentralized economy of Ethereum offers bitcoin holders a variety of ways to earn passive income in a non-regulatory way, in keeping with the core philosophy of cypherpunk. This is in stark contrast to the options available to bitcoin holders before, when depositors would have to rely on a centralised institution such as BlockFi or Celsius to earn their gains.

Even better, there are more types of encapsulated bitcoin on Ethereum than ever before. While wBTC has historically been the dominant asset class, the ecosystem now has a number of options, including renBTC, tBTC, sBTC, and others.

I doubt that this trend will end soon. Ethereum will have only more ways to use your capital, and BTC holders will have only more "flavors" to encapsulate bitcoin.

8. Grayscale Ethereum holdings record high

Source:The Block

Grayscale is becoming a black hole for cryptographic assets. Not only does the company own all of BTC's 2.5 percent stake, but also Ethereum's holdings have grown to 2.3 percent ($1.7 billion) of total supply through its ETHE Trust product. Daily trading volumes for the asset also reached an all-time high, averaging more than $24.6m in November, well above the record of $15.6m set in August 2020.

But there is a small caveat. While a surge in grayscale Ethereum trust product prices is a good signal, institutional investors (who need to forge "equity") may have taken advantage of the high premium being paid for the acquisition rather than looking at it as a long-term investment.

For reference, currently 132% ETHE premium ーー to lock the etheric lane 6 to 12 months, this is a good return. In any case, the rise does give institutional investors a chance to try Ethereum.

Ethereum's stability currency is at an all-time high

Source:CoinMetrics

The DeFi Cambrian explosion was only possible with the growth of the stable currency on Ethereum. But in 2018, there are few stability coins other than Tether (USDT). There are now dozens of different cryptographic stabilisation coins, from legal tender stabilisation coins, digital asset collateral stabilisation coins to algorithmic stabilisation coins. And the trend does not seem to be slowing.

Because these stability coins were publicly available to anyone with an Internet connection, Ethereum greatly expanded the global reach of the dollar. The recent events in Venezuela are a case in point. USDC Circle, the group behind the agency, works with Venezuela and Airtm to provide assistance to allow Venezuelan health workers on the front lines to use the USDC.

10. ETH in deposit contracts is at an all-time high

Source:Dune Analytics

The final chart is a bit of a cheat, because it can only go up now. All the same. The contract now holds more than 1.5 percent of ethereum's total supply, representing a value of more than $1.1 billion.

Although it is still early days, the signs of capital pouring into deposit contracts are unmistakable signs of support from the Ether community. Best of all, more and more infrastructure is being built around Eth2.

Whether it's a major platform like Coinbase or COon, a decentralised pledge service, or a better plug and play hardware solution for individuals, Eth2 verification will only get easier in the future.

Looking to the future

Decentralized economies are being built day after day. And there is plenty of evidence to show for it. Consider that the DeFi industry barely existed two years ago. But now there are more than $15 billion of capital to be DeFi, and the stability of the $20 billion dollar ーー all of these can access through the network.

Although I only list these 10 numbers, there are many other indicators that have broken new records across the Ethereum economy. NFT and digital art have reached seven-figure volumes, and the volume of "mysterious" financial products such as Lightning loans has soared to billions of dollars.

There are many ways to prove this:Ethereum is growing.