Ethereum will rise in price 10,000 times." Why cryptocurrency will continue to grow
Experts explained how the rollout of the protocol 2.0 will affect the price of the largest-capitalization altcoin, and to what level the digital coin may strengthen in the long term
Reynaldo Marquez, an analyst at NewsBTC, predicted that in the long run, Ethereum's price will rise from the current $3,000 to $20,000-40,000. According to Marquez, the price increase will happen as the altcoin upgrades to the 2.0 protocol.
In January 2021, Fundstrat Global Advisors analyst David Greider said that the value of the altcoin could exceed $10,000. According to Greider, Ethereum's upgrade to the 2.0 protocol will allow the blockchain to approach such payment systems as Mastercard and Visa in terms of transaction volume.
Last year, Michael van de Poppe, an analyst at the Amsterdam Stock Exchange, also made a prediction about Ethereum's rise in price. According to the analyst, the digital coin has the potential to grow up to $10,000.
On August 18, the value of Ethereum is $3,000. The rate of the digital coin in mid-August for the first time since mid-May exceeded $3,300. On May 12, the price of Ethereum reached a historic high of $4,300.
What is Ethereum 2.0
The Ethereum 2.0 protocol will scale the original blockchain and make it more user-friendly. The main feature of the update is the network's transition to the Proof-of-Stake (PoS) consensus - it will replace the Proof-of-Work (PoW) consensus on which the blockchain currently operates.
The main difference between PoS and PoW is that you don't need miners to generate processing power to keep the PoS network running. The blockchain is maintained by digital coin holders and is remunerated for doing so.
On August 5, the Ethereum network underwent an update to London , which completely changed the mechanism for charging commissions for transactions. Some of the commissions that miners used to receive as rewards are now burned off.
As of 6:00 p.m. MSC on Aug. 18, 60,600 Ethereums worth $183.7 million had been destroyed, according to ultrasound.money, a service that tracks coin burns on the altcoin network. The average burn rate per minute is 3.22 Ethereums.
Burning is the destruction of a certain number of tokens to reduce their number in circulation. This method is used to fight inflation and increase the value of the cryptocurrency. All coin burning transactions are recorded on the blockchain as a transaction, so anyone can verify that the coins have been destroyed.
Ethereum's transition to the 2.0 protocol will be a growth factor for the coin, according to Victor Pershikov, lead analyst at 8848 Invest. In his opinion, technical improvements to the project, combined with continued significant demand from dApps developers, as well as the integration of the PoS algorithm, could be a serious base for demand for the asset from institutional rather than retail players.
"The path Ethereum developers are taking and the willingness of users and network participants to move to version 2.0 could shift institutional attention from the regulatory toxicity of bitcoin to Ethereum, which underpins many blockchain projects in the industry," said the analyst.
In the next couple of years, Ethereum's market capitalization could increase 3-5 times, Pershikov predicted. On Aug. 18, the market valuation of the altcoin is $359 billion, according to CoinGecko.
Ethereum will be able to surpass bitcoin in capitalization only if the main cryptocurrency stays at $50,000, while altcoin will rise in price to $10,000, thinks the co-founder of the EXMO cryptocurrency exchange Ivan Petukhovsky.
Ethereum was worth about $0.3 during the ICO (initial public offering of tokens) and since then its price has risen 10 times, reminds cofounder of BitCluster Sergey Arestov. In his opinion, nothing prevents altcoin from continuing to grow and rise in price another 10,000 times.
"Bitcoin is an investment and payment instrument. Ethereum is an ecosystem that can be called the internet of the cryptocurrency world" You can always buy cryptocurrency on one of the best exchanges https://accounts.binance.me/ru/register?ref=108263144.