It is known as the “digital oil” of the crypto-space, Ethereum (ETH) fuels the protocol layer. The second-largest cryptocurrency has hit new records at the start of 2021, at the value of $1522, making it reach a new all-time high and a market cap of $176,673,547,677 at the time of writing.
Unquestionably, the ‘Gold Is Lame’ statement from Vitalik Buterin, co-founder of Ethereum, proves to be accurate as the digital assets continue to gain popularity. It would not be wrong to say that we will witness ETH crossing $2,500 by the end of 2021.
ETH vs. BTC
There is a never-ending contrast between BTC and ETH in investor’s minds. On learning the differences in details between these cryptocurrencies, I analyzed that it is similar to comparing cheese and vegetable pizza. Everybody has their preferences!
Even though you don’t need to dig deep in better terms, we are more interested in seeing the benefits you enjoy after investing in any crypto-asset. A quick illustration of what these currencies are about will help us to get clarity.
- Bitcoin offers the facility to transfer without using any central authority in between, while Ethereum is built on the idea of blockchain rather than copying BTC.
- In terms of transactions, ETH is way faster. It supports up to 30 transactions per second. While in the case of Bitcoin, only 4.6 transactions are possible in one second.
- ETH is a platform, i.e., more than a currency, unlike Bitcoin, a cryptocurrency and a store of value with a limited supply.
It is worth noting that Bitcoin is a cryptocurrency, while Ethereum is a decentralized platform to program other ideas.
Ethereum Price Prediction
The weekly charts of ETH show a high surge in its prices. The current value of ETH is $1695.098215 showing a rise of 1168% since 2020. And mind it – this price action is not by mistake!
So now, let’s jump into the technicality of ‘why and how’ the price would hit $2,500 by the end of 2021.
Ethereum Better than Bitcoin in 2021
The official launch of the Ethereum blockchain was in 2014. However, the future was not always clear. The claim that Ethereum can easily cross $2,500 in 2021 is due to the cup and handle pattern seen in its trajectory.
The cup and handle show the charts’ bullish trends, where the right side of the chart shows the extending uptrend. There can be multiple reasons associated with this bullish behavior, for example:
1. Gold Is Now Lame
If you remember the “Gold Is Lame” statement of Vitalik Buterin, then let me tell you the basics of it. The current gold market cap is around $10 trillion, which is on and off 2% of the total global wealth. Simply if 2 to 3% of this switch to Bitcoin, the value of BTC will hit $100,000.
Analyzing the pattern of 2017, where Ethereum gained an astounding 10,000%, BTC managed to add 1500% to its value. It has been seen that the BTC wave always pulls the Ethereum towards surge. Thus, the value of Ethereum ought to go up in the coming year. If the trend of 2017 will be repeated, then it is no surprise that Ethereum will cross $2,500 by the end of 2021.
2. Launch of ETH 2.0
On the launch of the parallel staking network Eth 2.0, five years after the launch of Ethereum, the said Eth 2.0 launch could see an extensive no. of the user participation on the ETH 2.0 network. Statistics show that investors are stacking Ethereum, which is a significant factor in the surge of Etereum prices.
The new chain is working as the backbone of a future Ethereum network. The beacon chain release on Dec 1 soon sets the Ethereum price All-Time High in a short span of two to three months.
3. The Demand for DeFi Applications and Institutional Investments
Decentralized Finance has replaced the centralized ways of transferring money, where one can transfer money without any central authority in between. Since decentralized applications or dApps run on a blockchain network, mostly Ethereum, due to its open-source blockchain-based decentralized platform, dApps can develop multiple applications.
According to the coin base annual review of 2020, more institutional investors are buying ether, as it seems to be a store of value. The crypto-exchange is experiencing growing numbers of institutional clients looking for more substantial returns and giving wind to the crypto bull.
4. Increase in Use of Blockchain Technology
According to the World Economic Forum statistics, 10% of the global Gross Domestic Product will be facilitated by blockchain technology. Technology helps foster innovation. For example, we are promoting healthcare records, sustainable energy sharing, food distribution, etc.
How Much Could Ethereum be Worth?
Interestingly, crypto-games are also on the Ethereum platform, increasing the acceptance of the token extensively. Given that Ethereum is an alternative to global currencies, it facilitates smart contracts and applications, which craves the way for massive potential in investors’ minds.
With Ethereum rising in its value by more than 20 percent and constantly breaking an all-time high continuously over the last two weeks, crypto analysts predict that the near-term price of Ethereum will remain bullish shortly. Konstantin Anissimov, executive director of London-based cryptocurrency exchange CEX.IO, pictured that “the rapid price increase is just a matter of days before it breaches the $2,000 mark.”
In my opinion, Ethereum reaching $2,500 by the end of this year, 2021, is very much possible due to multiple reasons. The first is a transition of 2-3% of the economy to the crypto-market, providing Ethereum wind beneath the wings. Secondly, the decentralized applications. Yes, applications hold significant importance nowadays. Running on the P2P network, decentralized applications allow multiple processes without any central authority, including in between.
Ethereum is set to hit new heights in 2021, so hold your breath and get ready for the ride. In the end, the final decision always belongs to you. Figure out and see if Ethereum is something that can be called a good investment.
To get the latest Cryptocurrency, Blockchain, and Crypto-mining news, please join our Telegram Channel