Ethereum Cryptocurrency Predictions: When to Expect Growth?
On October 21, Ethereum rose to a record $4,360. That day, at its peak, the cost of Ethereum reached $4,366 – this cryptocurrency has never been so expensive, which is an important event according to CoinMarketCap. Being one of the largest altcoins in the market, ETH has updated its price record. Even though the rate stabilized at around $4,000, traders and investors foresee that Ethereum will continue to grow.
The Fundstrat’s Digital Asset Strategy Head Sean Farrell told in an interview with Yahoo Finance Live that the ETH value would increase to $10,000. In this context, we would like to remind you that he has already predicted the rise of BTC, and at the moment his forecast is absolutely relevant concerning both BTC and ETH. Meanwhile, the market capitalization of ETH is getting closer to the mark of half a trillion dollars. All this stimulated the growth of interest in an Eth casino that pays off winning in ETH.
The Rise of Ethereum: Can It Replace Bitcoin?
“Ethereum can take the first position in the cryptocurrency market replacing Bitcoin”, said Vitaliy Buterin, the co-founder of one of the most famous crypto assets in the world.
According to him, ETH will bypass BTC very soon in terms of market value. Ethereum now costs more than $482 billion, while Bitcoin has surpassed the $1 trillion mark. According to Buterin’s forecasts, Ethereum will obtain the status of the most reliable means of preserving capital for investors in the future and will replace Bitcoin.
Mr Buterin also thinks that such prospects became possible after the activation of EIP-+1559 during the London update. The main pros of Ethereum compared to BTC will become relevant after the final move to protocol 2.0, which will finish the transition to the Proof-of-Stake (PoS) from the current Proof-of-Work (PoW). It is expected that this event will make this crypto handier for users as it will finally fix the existing network problems.
What Do Investors Think?
Overall, investors support Buterin’s optimistic prediction. According to the CoinShares Digital Asset Study, 42% of investors agree with the development prospects and arguments provided by Buterin. Meanwhile, only 18% of respondents are optimistic about the good future of the competitive asset – BTC. Besides, the respondents are sure that both virtual currencies hold the most notable place in the market – about 30% of traders are investing in both BTC and ETH.
The famous billionaire Mark Cuban also shares this opinion. In his interview with CNBC, he stated that the ETH crypto is perhaps the most attractive coin for investment. ETH already costs about $4,000 today. At the same time, some traders predict the growth of the rate up to 10 and even 20-40 thousand dollars per coin. Accordingly, ETH has rather optimistic prospects. Even if this altcoin won’t bypass Bitcoin, it will remain a very tempting asset for investors.
ETH – Whales Accumulate More Altcoins
According to the data provided by Santiment, large investors have begun to put more and more money in their wallets, and at the moment the volume of such “whale-level” wallets is gradually exceeding the exchange reserves. The impact of individual investors calms down the market, so there are fewer attempts to rapidly get rid of ETH. This ratio began to rise significantly since November 2020 and has shown no signs of weakening since then.
The price to the value of OTC wallets correlation has been noticed from the very beginning. ETH follows the same trend as the aforementioned indicator. This is most likely due to the market’s belief that if there are fewer funds on the exchanges, there will be less selling pressure during correction periods.
What Will Happen to Ethereum After Upgrading to ETH 2.0?
The final transition of the network from Proof-of-Work to Proof-of-Stake should decline Ethereum’s supply. ETH is exposed to deflationary pressure due to the introduction of EIP-1559. The transition to PoS should make the asset simply deflationary.
Nowadays, there is over 118 million ETH in circulation. While this crypto has no supply limit, this figure is not expected to get very large. The Ultrasound Money tracker’s simulation of the ETH shows that the supply will annually decline by 2% after switching to PoS. Whether current rates will survive, the blockchain will start burning more ETH than it produces with each new block.
In early August, Ethereum developers started one of the biggest blockchain updates in the history of the London hard fork. It included EIP-1559 – a new proposal that aimed to increase the block size of Ethereum to help prevent network overload and reduce transaction fees rather than sending them to miners.
The idea was to put deflationary pressure on an asset that already is six times bigger than Bitcoin available in circulation. According to statistics from Watch the Burn, ETH emissions have decreased by 57% to date; over 1.1 million ETH were distributed to miners as block rewards, while almost 630,000 ETH were burned.
When Ethereum will finally move to ETH 2.0, deflationary pressures should turn into direct deflation.
How to Turn Ethereum Into Income?
The first step to generating income on the growth of the Ethereum rate is the acquisition of this cryptocurrency. To start, it is not necessary to have a lot of capital. It is enough to choose a reliable trading platform. All you need to do is open and replenish an account at any trading platform you trust. The following algorithm of actions is as simple as possible:
- select ETH in the list of financial assets;
- determine the amount and direction of the transaction;
- buy or sell this cryptocurrency (literally just one click is enough for this).
You can work with the trading platform both from a computer and from a mobile phone through applications for the iOS and Android operating systems. It is possible to carry out profitable transactions and manage capital in any place where there is access to the Internet.
What are your predictions for Ethereum? Share with us in the comments.