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Ethereum Price Preview: February 15 — 21

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Last week’s preview made the case for an extended bull run due to the strong fundamentals underlying both ETH and the wider crypto market. Since then, we’ve seen many high-profile announcements of institutional crypto adoption taking awareness of crypto to new and unprecedented heights.

ETH Bull Run

ETH now hovers around $1,800, likely eyeing $2,000 as the next psychological milestone in price. However, the token could be due a correction all the way back down to $1,700 before we see further upward momentum.

Having said that, the market fundamentals are stronger than ever before. Grayscale trust added $93 million worth of ETH to its balance sheet last week, sending a major buy signal to the wider market. The crypto institution bought almost 53,000 ETH in a single day and now boasts 1.3 million ETH under management.

Ethereum Layer 2 network, Matic, rebranded to Polygon and announced a new strategy aimed at tackling Polkadot as a competitor head on, describing their new goal to become “like Polkadot for Ethereum.”

As part of the initiative, Polygon has enlisted key Ethereum community members and builders such as Anthony Sassano, Ryan Sean Adams, and John Lilic as project advisors. Polygon announced that it would create a “front against Polkadot,” and the news was followed by an 83% spike in the platform’s token price.

Eth2 is now secured by over 3 million ETH worth $5.4 billion, a huge vote of confidence in the upcoming network upgrade.

The upgrade to Eth2, combined with Layer 2, is expected to provide major relief to the serious congestion problems Ethereum has been facing throughout the recent bull run.

DeFi News

The DeFi boom continues with over $40 billion in total value locked. Maker ranks first in the market with 16% dominance and $6.57 billion in TVL compared to $5.7 billion for Aave. The DeFi pulse index (DPI) token is now worth $444, up from $115 at the start of the year and now with a market cap of $127 million.

Source: DeFi Pulse

Synthetix received $12 million in funding from three VC groups last week, namely IOSG, Paradigm, and Coinbase Ventures.

The VC firms will add liquidity and assist in platform governance, and made the investment by purchasing $12 million worth of SNX tokens.

Alpha Finance suffered a $37.5 million loss in an exploit involving (yet again) flash loans. The exploit was found in Alpha Homora V2 product, not in Cream Finance as many outlets originally reported.

Alpha is a leading DeFi protocol that allows users to leverage their yield farming strategies. This latest hack reflects the vulnerability that continues to be found throughout the nascent DeFi space as development continues.

$2 Trillion Investment Giant Leads Major Crypto Adoption

BNY Mellon, the oldest bank in the U.S. and a major investment institution with $2 trillion in assets under management, rolled out crypto custody last week stating that “digital assets are now becoming part of the mainstream.”

BitPay, the world’s largest provider of Bitcoin and crpyto payment services, added support for Apple Pay last week. BitPay prepaid Mastercard users can now spend crypto on Apple products and services, such as microtransactions in the App Store. The BitPay wallet app supports ETH as well as BTC, BCH, and multiple stablecoins.

Mastercard itself will be supporting select cryptocurrencies directly this year as part of a growing movement of widespread cryptocurrency adoption unfolding throughout the mainstream financial sector.

Hedge fund manager Ray Dalio is a keynote speaker at the Consensus 2021 crypto conference, notable due to Dalio’s gradual shift from being a crypto critic to a tentative supporter.

Dalio has recently stated that he may have been wrong to doubt crypto in years gone by, adding that Bitcoin in particular may go on to hold its value in future.

Media Roundup

The Hello Decentralization conference is scheduled for next week on February 22 – 26, featuring dozens of speakers from projects including Raiden Network, Solidified, Golem, Web3 Foundation, and The Graph among others.

The conference site states that the conference is a “free online event and a meeting point for the community to talk and discuss decentralized technologies from a technical perspective.”

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Conor Maloney
Conor Maloney Analyst