The first and foremost altcoin, ethereum, has skyrocketed to an all-time high with the coin hitting a value of US$4,470 yesterday. At the time of writing, the cryptocurrency’s value has surged even more and was being traded at US$4,556.70 with a 5% 24-hour growth. The sudden growth has put ether’s market valuation at US$2.7 trillion, giving a stronghold to the second most adopted digital token in the cryptocurrency market.
But what triggered the ethereum price when bitcoin is still maintaining a moderate value for a week straight? It is the metaverse and NFT announcements. Ethereum is expected to expand its service range to the metaverse. Metaverse is a digital space where you can work, play, or even create a community in the digital environment just like the physical one. On the other hand, ethereum has also come forward to tell that its technology is being used to sell the digital craze, non-fungible tokens (NFTs). In a nutshell, ethereum price has gained over 1,000% in the past year. Owing to the increasing adoption of disruptive methods, ethereum price is predicted to skyrocket to further highs in the coming days. Some enthusiasts even suggest that ether will breach its US$10,000 resistance by this year-end. In this article, we explore the price predictions of ether and talk about the right time to invest in a profitable cryptocurrency.
Ethereum Price Prediction
According to a previous report submitted by a panel of 42 cryptocurrency experts in October, etherum price was anticipated to breach the US$4,500 mark by the end of 2021 and reach US$10,000 by 2022. However, things have changed upside down now. Even previously some enthusiasts have boosted ethereum’s value to reach the US$10k mark before the end of 2021. However, not many were very positive about the anticipation and thought it was overvalued. But the recent price rally and ethereum’s capability to part away from bitcoin and perform well has brought value to its stance.
Anticipations and Expectations on Ether
According to some analysts, bitcoin and ethereum were predicted to double their value before the end of the year. While an analyst behind Plan B handle on Twitter has said that bitcoin will reach US$98,000 this month, it also indicated an upcoming ethereum price rally. However, ether has proved that the cryptocurrency can grow on its own without bitcoin’s help.
Ethereum is the first altcoin that emerged out of bitcoin’s existence. Usually, ether follows bitcoin’s trend and keeps up with it. Whether it is a price surge or plummet, ethereum will follow the same path as Bitcoin does. But the recent price rally has indicated otherwise. Without a bitcoin price rally, ethereum has experienced a value surge. According to Goldman Sachs, ethereum network could well jump 80% to US$8,000 in the next two months if it keeps tracking inflations expectations. However, they also warned that central banks won’t let inflation rise sharply. JPMorgan has also said that they have seen signs of inflation in the cryptocurrency market. It has driven many investors to hold on to bitcoin and others rather than a gold investment.
On the other hand, billionaire investor Mark Cuban has said that ethereum has the most upside as an investment model. He added that because according to him, ethereum blockchain, smart contracts, or collection of code has changed a lot in the cryptocurrency market.
Why Ethereum 2.0 is a Big Success?
Many anticipated that Ethereum 2.0 could be a big success and might outperform bitcoin soon. They are not wrong. Ethereum saw the difference between the number of tokens issued and destroyed turn negative in the last seven days on aggregate for the first time. This is a tactic that bitcoin has used to trade its digital token since its inception. Bitcoin started its supply with a cap of 21 million. Once this number is reached, we can’t mine anymore bitcoins. The scarcity of the digital token has kept its value in the virtual currency ecosystem.
Now, ethereum has boarded the same train with its update to 2.0. Ether is gaining value from a process called burning, where coins are taken out of circulation. Whenever an ether transaction is made, a small quantity of the coin is burned. As more transactions take place, it puts more ether at the cost of burning, which could eventually drive its price.
On the other hand, Etherem ETF is also approaching the government approval stage. Although Bitcoin ETF is already on the radar, US regulators are more likely to approve ethereum ETF before giving a green signal to bitcoin.
So, Is it the Right Time to Invest?
There is no time as the right time when it comes to cryptocurrency investment. Even investing in the dip is not a wise method. So if you are planning to try your hand on ehtereum, you can do it right away. But make sure you invest an amount that can be handled in case of value decrease.
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