With the rise in DeFi transactions, Ethereum has been processing 2X the daily transaction volume of BTC. According to Messari, the 30 days rolling daily average of Ethereum transaction volume is currently $7 billion while Bitcoin is processing less than $3 billion.
And if the trend continues, Messari predicts Ethereum to become the first public blockchain to settle $1 trillion in transfers over a calendar year.
The last strongest calendar year for Ethereum was 2018 when it processed half a billion in volume which was 59% as much as Bitcoin's $849 million that year.
Ethereum, introduced by Vitalik Buterin is an advanced blockchain project that is home to several DeFi tokens. The popularity of the coin among crypto enthusiasts has led him to secure the position of the second-largest cryptocurrency.
One of the key features of Ethereum is that it is programmable which means that on top of using it as decentralized digital money, it can also be used as a marketplace for financial services, apps, games etc that can be built on the platform.
Ethereum facilitates developers to build smart contracts that automatically execute tasks when certain stated conditions are met.
Ethereum was performing exceptionally well in December 2017, it broke past the resistance at $500 and moved to $730 towards mid-December and managed to reach $900 towards the end of the month.
Continuing this rally, it reached the mark of $1000 in Jan 2018 only to fall to a low of $640 within the first week of Feb, and then it recovered from there.
Ethereum, like any other cryptocurrency, has seen a lot of ups and downs but has failed to reach the $1000 mark since Jan 2018.
However, the all-time high of ETH is $1400, which was back in 2017.
Despite the increased prices of Bitcoin, Ethereum is recovering mildly. It didn’t show a lot of movements for the last two years; however, it grew 100% moving from $200 to $400 in just fifteen days in July 2020.
Analysts are optimistic that Ethereum will outperform Bitcoin in 2020.
1. Crypto Research Report - They used the equation of exchange model to assess the future value of ETH by examining the future use case of the coin.
The model had predicted ETH to reach $331 later in 2020; however, the coin seems to have surpassed this mark well before.
It goes on to predict that by 2025 ETH will breach the mark of $3500.
2. Skew Analytics - According to Skew, a cryptocurrency and blockchain analytics firm have predicted Ethereum to scale to $480 by the end of 2020.
They crunch a few numbers and data in the background to give a reasonably accurate prediction.
3. James Todaro - He is a managing partner at Blocktown capital and a very well known name in the crypto industry.
As per his prediction, Ethereum will spike up and reach a price point of $9000 eventually. He also has confidence that ETH will potentially scale up to a $1 trillion market cap as a result of the rise in demand for DeFi tokens in the years to come.
4. Simon Dedic - He is the Co-founder of Blockyre who shares the same thought as James Todaro and feels that Ethereum has the potential to reach $9000 someday.
However, in the shorter run, he expects to ETH float at a price point of $800.
5. Brian Schuster - Founder of Ark Capital, Brian Schuster firmly believes that by the time 2024 approaches we can see ETH resting at the mark of $100,000.
We have seen a considerable dApp adoption in 2020 that drove the price of ETH. Also, an update called Ethereum 2.0 is scheduled for November 2020 as currently the network is stretched to its limit with the rise of DeFi.
The upgraded version is expected to increase the scalability of the network to 1,00,000 transactions per second, moving the blockchain from energy-intensive POW to POS.
The network is super popular with numerous projects built on it, given the advancements are maintained we can see ETH soar to 604.007 USD* Source: Gov Capital
Ethereum is expected to have a bunch of partnerships and integrations scheduled for 2022 that might boost the value of Ethereum in the market.
By 2022, ETH might reach $2500, which is quite optimistic but we are hopeful of it.
We expect to see a lot more exciting projects on the network, and with the pace, the advancements and introduction of new projects are happening on the network we may soon see it break all records.
Based on Fibonacci extensions alone, additional short-, medium-, and long-term price targets can be found. Using math alone, Fib ratios point to prices of $5700, $5100, $3700, $2200, and $1700 for possible new price records. Source: Prime XBT
Equation of Exchange is a simple model where MV = PQ here M stands for nominal amount of money, V is the velocity of money, P is the price level, and Q is the index of real expenditure.
When you put this equation into the perspective of cryptos all quantities are defined in units of fiat currency, setting P equal to 1 and M is calculated by the number of crypto assets in existence multiplied by the price of a single unit of the crypto asset, Q is the amount of value being transferred across the network and V’s interpretation remains the same.
This model runs on the basic idea that the value of a crypto asset is inversely proportional to its velocity, which means the higher the velocity, the lower the value of the crypto asset.
NVT or Network Value to Transaction ratio is another approach to predicting the future price of Ethereum.
NVT is calculated as follows: Market Cap/ Daily ETH value being transacted on the network.
A high NVT indicates a rise in the price of the asset.
Currently, ETH/USD Live price suggests that Ethereum is trading at $443.77, with a decrease of 0.14% today. The 24-hour price movement chart indicates that $14,472,956,542 worth of ETH was trading.
Currently, ETH/INR Live price suggests that Ethereum is trading at Rs 32843.26 with a decrease of 0.14% today.
As per the market analysts and enthusiasts, Ethereum has a high probability of price surge. Ethereum has a great roadmap scheduled for 2020 and years to come.
Ethereum might be the future as it is the first one to come with "smart contracts" or documentation without human intervention.
That can't be commented as both have its pros and cons. They both are the topmost cryptocurrencies in the world.
Ethereum might reach $2480 by 2020.
Ethereum might reach $5000 by 2030.
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