Bitcoin, Ethereum, Hit All-Time High As Major Blockchain Networks Get Upgrades

Crypto is going to the moon, and this time it’s not because Musk tweeted something.

Bitcoin and Ethereum are near all-time highs. Ethereum broke $4,800 last week and Bitcoin has topped $68,000.

There’s no single reason that could explain why crypto has been on the rise last week. However, optimism over the blockchain updates could be one.

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Ethereum 2.0 – Future Of Finance?

The first to hit an all-time high was Ethereum. It hit $4,841 following the launch of the Altair upgrade.

Altair is the first upgrade to Ether’s Beacon Chain phase, the first phase in the transition to Etherum 2.0.

Much of the optimism around Ether has to do with the capabilities of the network. Supporters see it as the future of finance.

Traders are taking notice. In 2021, the relative strength of Bitcoin to other crypto’s has fallen dramatically.

The so-called Bitcoin’s dominance, its share of the total crypto market cap, has fallen from 73% to 44%. Meanwhile, Ether’s share has risen to 20%.

As the network develops, some traders believe that Ether can overtake Bitcoin.

In fact, Ethereum, the first network featuring smart contacts, is currently undergoing a major transition. Namely, it is transitioning from proof of work (PoW) to proof of stake (PoS) blockchain.

Currently, proof of work blockchain limits what Ethereum can do. The high transaction costs mean that the network can’t really compete with traditional finance. The average transaction fee on Ethereum is currently $60. Moreover, the fees change depending on the price of Ether and the network congestion. 

Some people are also concerned about the environmental impact of mining, which has high demands for energy. Significantly, mining is essential for proof of work blockchain.

However, developers promise that Ethereum 2.0 will solve many of these problems.

Bitcoin’s Taproot Upgrade 

Perhaps the biggest news in crypto is that Bitcoin is getting its long-awaited Taproot upgrade.

Why is this significant? Well, the last upgrade to the largest crypto was 4 years ago!

Taproot upgrade will allow Bitcoin to support more smart contract operations. It will reduce fees and improve privacy.

Namely, the upgrade will allow users to mask complex smart contracts, making them look like regular Bitcoin transactions.

While Bitcoin is still behind Ether, and much behind crypto’s like Solana, it is still the largest crypto. The network upgrade will likely have a major effect. Or rather, it had, if it is already priced in.

As tech developments create more use cases for crypto, demand is likely to increase. And with it – the price.

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