Ethereum is the second-largest coin after Bitcoin in the cryptocurrency community. It has been very consistent in the past few months. 2021 was one of the most significant years in the growth of Ethereum as the token moved from below the $1000 price to a record all-time high of $4000 in the first quarter of the year. This growth, however, was not on the Ethereum network alone, as other altcoins (majorly) and Bitcoin also enjoyed this pump in their unique capacities. The development of Ethereum is one that came rather shocking to most investors as its movement was seemingly unprepared for. Although several analysts and crypto enthusiasts predicted 2021 as the altcoin season, Ethereum happened to be in that category, hence, the massive pump.
According to predictions made by analysts, the price of Ethereum is set to increase by 400% to about $20,000 by 2025. Major upgrades on the network will also be an essential factor in shooting the price upwards. Ethereum is trading on all trading platforms. With a single button, you can buy Ethereum on all major trading platforms without stress.
There have been several debates and analyses regarding the future price of Ethereum and if it would outshine Bitcoin. However, these questions are not straightforward to answer since the predictions are based on speculations. What is important is to point out the significant differences in Ethereum and Bitcoin and the advancements the Ethereum network has over Bitcoin.
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The price of Ethereum in years to come
Experts have predicted that Ethereum will be the most widely transacted cryptocurrency by the end of 2022. Upgrades on the Ethereum network began last year with the Ethereum 2.0 to upgrade the transaction rate and the gas fees on transactions on the Ethereum network. However, some panelists also speculated that the price of Ethereum could also skyrocket to $100,000 in years to come with the way Ethereum upgrades are being discussed.
Also, another determinant of the price of Ethereum is the usability of the Ethereum network. Most DeFi tokens are built on the Ethereum network. Some of these tokens have significant fundamental use cases that make it possible for adoption. Most investors are now turning to altcoins, which are either NFTs (Non-fungible tokens) or DeFi (decentralized financials) tokens, as a means of beating down the dominance of Bitcoin. Since these DeFi tokens are still very much affordable, more interest is tilted in that direction. All the buying and selling, and trading all happen on the Ethereum network. Hence, as the network undergoes more usage, more investors also buy Ethereum the same way investors buy exchange native tokens.
Will Ethereum overshadow Bitcoin in the next couple of years to come?
One of the frequently asked questions regarding Ethereum and Bitcoin is if Ethereum will surpass Bitcoin anytime soon. Bitcoin has been in existence since 2008 and Ethereum in 2014. Although, Ethereum, with its present momentum, is confident in catching up with Bitcoin. However, Bitcoin’s dominance and total supply are some of its major strengths above the market. While Bitcoin has about 18 million in circulation, Ethereum has about 117 million, which says a lot about the dominance. Bitcoin holds the most significant percentage of the whole cryptocurrency supply, about 46%, as opposed to 85% in 2017.
Be sure to note that if Bitcoin’s dominance continues to reduce and altcoins and NFTs are given the opportunity to spike, it might be the only advantage and time for Ethereum to surpass Bitcoin. But bitcoin doesn’t seem to be done with the crypto community just yet, from the charts and analysis. It’s going to take more than just funds to break its dominance.
With Ethereum transitioning from the Proof of Work (PoW) to Proof of Stake (PoS), the network fee, security, and scalability aim to improve significantly. It’s also a significant distinguishing factor between Bitcoin and Ethereum since Bitcoin uses PoW for mining and verification of blocks. The Eth 2.0 upgrade also aims at overhauling Ethereum’s main consensus, transitioning from the energy-consuming PoW to a scalable PoS.
As mentioned above, Ethereum is a critical player in both the DeFi and NFTs and has its net wide enough to provide a fast transaction rate and the ability to run smart contracts applications without having any technical issue whatsoever. The Ethereum network is such that enjoys upgrade. Till this very moment, still undergoing major upgrades, it won’t take much time now before it skyrockets and set a new all-time high.