Ethereum's price is affected by both technical factors like network upgrades (ETH 2.0) and market sentiment. Key technical influences include gas fees, scalability solutions, and investor expectations around major updates.
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The overall market cap of DeFi (Decentralized Finance) can influence crypto prices because many DeFi platforms are built on top of blockchain networks like Ethereum. A rise in DeFi’s market cap indicates growing adoption and liquidity, potentially driving up the price of Ethereum and other tokens tied to DeFi. Conversely, if DeFi experiences a downturn, it can result in reduced demand for these assets, leading to downward pressure on prices. The correlation between DeFi growth and crypto prices is a key consideration for traders and investors.
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When evaluating a cryptocurrency project’s whitepaper, focus on the problem the project aims to solve, its proposed solution, and the technology behind it. The whitepaper should clearly explain the use case, tokenomics, governance structure, and scalability. A strong development team and a well-defined roadmap are also crucial. Additionally, the whitepaper should address security, decentralization, and potential regulatory challenges. Be wary of vague promises or lack of transparency, as these could signal a lack of seriousness or a potential scam.
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