Ethereum, also known as Ether or ETH, is next only to the most popular cryptocurrency, i.e., Bitcoin (BTC). The price of Ether was USD1,700 on January 29, 2021, 127.88% up from what it was in December 2020. The daily transaction value of Ethereum has reached $12 billion, according to GrayScale’s latest report. Let’s see what is in the future for investors or traders of Ethereum.
If you are new to Ethereum or Ether, here is what they are. Ethereum is a decentralized open-source blockchain with smart contract functionality, and Ether (ETH) is the native cryptocurrency of the platform. With the built-in capabilities and resources of Ethereum open-source blockchain, developers can build products and services (dapps) for finance, work, social media, gaming, and more. Thus, Ethereum is not just limited to cryptocurrency. However, in the current blog, we’ll focus on the cryptocurrency part only.
The above graphical representation of a report from Statista compares the market capitalization (2015-2021) of bitcoin, Ethereum, and other crypto coins. The market capitalization of Ethereum increased from 1% to 8% while that of BTC decreased from 86% to 66% in the same period.
Along with spot, futures, and derivatives’ trading options are also available to Ethereum investors. The growing demand for Ethereum has encouraged the maker, i.e., Ethereum Foundation, to upgrade the Ethereum network. Ethereum 2.0 (Eth2) is more scalable, secure, and sustainable. The extended and enhanced features of the network will not only make it easy for exchanges to allow trading in Ether but also boost the confidence of institutional investors (e.g., Mutual funds, and insurance companies) who trade in volume.
Ethereum Price Predictions 2021
The value of Ethereum is at its all-time high. Take a look at the yearly growth in its value. Over the past two years, i.e., in 2019 and 2020, the growth has been consistent. Year-on-Year 2019-2020: 73.91% and 2020-2021:642.35%. The average of Y-o-Y for the two years is 358.13%. With this pace, the value of ETH is likely to reach USD 6,088.21 by January 2022. If you are investing in Ethereum for tenure as long as a year, keep your fingers crossed.
Some experts claim even a much better rise. They project a value as high as $25,000 per ETH. It may sound a bit exaggerated, but it makes sense if you look at the 127.88% growth in just one to two months from December 2020 to January 2021 as we mentioned in the beginning.
Ethereum Price Predictions 2022 – 2023
If Ethereum blockchain platform succeeds to draw in businesses to accept payments for their products and services in ETH in line with BTC’s model, then it’s more likely to attract more investors – institutional as well as retail ones. The value of Ethereum is likely to gain more momentum and reach at par with bitcoin by 2023.
Thanks to the relentless efforts of the Ethereum Foundation and the developers working on it. So far, you used to send ETH from one account to another, but now, you can do more as follows:
- Stream ETH – pay someone or receive funds in real-time.
- Swap tokens – you can trade ETH with other tokens including Bitcoin.
- Earn interest – on ETH and other Ethereum-based tokens.
- Get stablecoins – access the world of cryptocurrencies with a steady, less-volatile value.
Ethereum is no more limited to one cryptocurrency
You heard it right. You can use this open-source blockchain platform to create new kinds of assets and trade them on Ethereum. Unlock new possibilities with Ethereum. These are known as ‘tokens’. Users have created tokens out of their traditional currencies, real estate, art, and even themselves! The number of tokens is growing rapidly with Ethereum.
Want to trade ETH happily?
Welcome to PCEX Member! It is a few of the crypto trading platforms in India that are backed by high liquidity and security. Whether you want to trade in bulk or just make a beginning, the platform has got you covered. It accepts INR as fiat currency which is a good news if you are from India, and want to avoid currency exchange fees. Smaller lot sizes and low transaction fees make it one of the most popular Ethereum trading platforms in India.
Much of the demand for ETH depends upon the government’s policy structure. Investors are keenly watching the state’s move followed by the issuance of the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. Stay tuned with PCEX Member’s Blog to stay updated!