Known as the “digital oil” of the crypto-space, Ethereum 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.
There is a never-ending comparison 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 own preferences!
Although you don’t need to dig deep in terms of which is better, what we are more concerned about is to see the benefits you enjoy after investing in any crypto-asset. A short comparison of what these currencies are about will help us to get clarity.
It is worth noting that Bitcoin is a cryptocurrency, while Ethereum is a decentralized platform to program other ideas.
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.
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 bullish trends in the charts, where the right side of the chart shows the extending uptrend. There can be multiple reasons associated with this bullish behavior, for example:
If you remember the “Gold Is Lame” statement of Vitalik Buterin, then let me tell you the basics of it. The current market cap of gold 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 is 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.
On the launch of the parallel staking network Eth 2.0, five years after the launch of Ethereum, a large no. of the user, participation can be seen on the ETH 2.0 network. Statistics show that investors are stacking Ethereum which is again a big factor in the surge of Etereum prices.
The new chain is working as the backbone of a future Ethereum network. The release of the beacon chain on Dec 1, soon sets the Ethereum price All-Time High in a short span of two to three months.
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, on which multiple applications can be developed.
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 stronger returns and hence giving wind to the crypto bull.
According to the statistics by the World Economic Forum, 10% of the global Gross Domestic Product will be facilitated by blockchain technology. Technology helps foster innovation. For example, facilitating healthcare records, sustainable energy sharing, food distribution, and so on.
Interestingly, crypto-games are also on the Ethereum platform, which is increasing the acceptance of the token extensively. Given that Ethereum is an alternative to global currencies, it facilitates smart contracts and applications as well. Which craves the way for huge potential in the minds of investors.
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 are predicting that the near-term price of Ethereum will remain bullish in the near future. 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 being, a transition of 2-3% of the economy to the crypto-market, which will provide 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.