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Author: Admin | 2025-04-28
On Ethereum had also increased the market demand for Ether. As the on-chain staking causes a short supply of ETH, the ETH price hit new highs one after another, which had only stopped at $4,300 the following year, increasing its market value by as much as 10 times.2021: NFT ExplosionIn the summer of 2021, with China’s ban on crypto mining and exchanges withdrawal from the Chinese market, the price of ETH fluctuated violently - the price halved to below $2,000 and then rose with the good news of the listing of Bitcoin ETFs. Due to the boom for blockchain games and NFTs, the Ethererum’s London upgrade (EIP-1559) in August has made Ether a deflationary currency, with a total circulation of about 120 million on the market and a new high of $4,800 in early November.2022: Scaling SolutionsIn December, as the Federal Reserve announced to shrink its balance sheet, and Russia’s war in Ukraine broke out in February 2022, funds were pulled out of the high-risk crypto market. The collapse of the algorithm stablecoin Luna in May and the liquidation of leveraged products by many institutions also increased the selling pressure. ETH began to drop from $3,300 earlier this year and fluctuates around $1,000 at the time of writing, making its market capitalization fallen from nearly $500 billion at its peak to $100 billion. Despite the downturn, the ETH 2.0 mainnet upgrade expected to be completed by the end of the year and the growing number of DApps may still drive Ethereum to an ever brighter future.2023: Shanghai Upgrade and the Blossoming of Layer 2In 2023, Ethereum completed two technical upgrades, the “Shanghai Upgrade” and the “Capella Upgrade.” One of the major effects of this upgrade was to allow stakers who deposited ETH during the consensus mechanism change (users needed to stake their ETH to receive rewards after the mechanism change) to withdraw their funds from the chain. It also successfully implemented changes to the previous consensus mechanism.On June 12, Ethereum co-founder Vitalik Buterin pointed out in his latest blog post that for Ethereum to achieve long-term sustainability, the expansion of Layer 2 is one of the important technological transformations. If Ethereum is likened to a kingdom, then Layer 2 is like the cities under this kingdom, and the development of these cities is closely related to the rise and fall of the kingdom. Layer 2 is like building a viaduct
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