What Is Ethereum?
Launched in 2014, ethereum is one of the oldest altcoins and it is a sole competitor for Bitcoin; it is the second-largest cryptocurrency by market cap. It outshines other cryptocurrencies by its benefits and there are several speculations that it could beat Bitcoin in the future. If the user is looking to build a good portfolio they can invest in ETH now. An ERC20 token is the most significant token offered by ethereum; it has paved the way for several projects on the blockchain of ethereum. As of today, Ethereum’s most of the projects in the cryptocurrency market use ERC 20 tokens.
History of Ethereum Coin
In 2013, the founder of ethereum, Vitalik Buterin, conceptualized a smart contract that uses blockchain, which gained support from crypto enthusiasts. Ethereum’s initial ICO coin offering was hosted in 2014, and it started its trading journey on cryptocurrency exchanges; in 2015, it was trading for $2. Ethereum’s price began to move upwards in 2017, which was trading for $10 and reached the price of three digits. Further, developers have created ERC20 tokens where some of the projects can sustain long-term. In 2018 January, the price of ethereum went up to $1400.
How Does Ethereum Coin Work?
Ethereum’s name was always connected with the blockchain network where its native currency ether runs. ETH uses smart contracts to execute highly secure transactions. When compared with Bitcoin, ethereum does not have a fixed supply of Ether which implies it is highly scalable when compared to other cryptocurrencies. This is the major reason why investors expect that it might outperform Bitcoin. Moreover, ETH runs on an open-source blockchain platform that executes secure cryptocurrency transactions; it is also known as a decentralized application or dApp.
Growth of ETH
Ethereum supports its native currency ether; the platform also supports other cryptocurrencies; few of the cryptos are highly active in the decentralized finance market. It is a rapidly developing sector that offers services like insurance, loans, and savings programs that are free from third parties like centralized businesses or banks.
What Factors Affect the Price of Ethereum?
Here is a list of factors that affect the price of ETH explained
- The demand is moving towards decentralized finance, and there is a massive demand for DeFi (decentralized finance), which is offered by ethereum. It provides financial services not regulated by central authorities like banks and big organizations.
- The much-awaited upgrade of Ethereum 2.0 was launched in December 2020. This asset has caught up with the market bull run. Users already saw the value of ethereum has increased after the upgrade took place. This upgrade will offer several benefits to the platform.
- When the price of Bitcoin goes up, it affects the cryptocurrency market as well. When the Bitcoin price is bullish, it will also make other cryptocurrencies move towards an upward trend.
- One of the other factors that increase the price of ethereum is high transaction volume. This, in turn, increases the number of transaction fees carried out on the ethereum blockchain. The fees are paid to the miners who sell their tokens in the open market, which increases the supply of ethereum.
ETH Price Prediction 2021 – 2025
- According to recent research by experts, they predict that the price of ethereum will move to $5,114 before the end of 2021.
- By the end of 2022, with the bullish trend, the price of ethereum might go up to $7000. According to the Ethereum price prediction by experts, the price might touch $10,000 before the end of 2022.
- Experts predict that the ethereum price might move up to $11340 by the end of 2023, and the minimum price of the crypto will reach $5,686.
- As per research, experts predict that the price of ethereum will move upwards, and by the end of 2024, it might cross the $13,000 mark. They also expect that on the downside, the price might be around $ 5,900.
- According to the price forecast by experts, the ethereum price prediction might be $23,329 to $27,602 by the end of 2025.
Conclusion
To conclude, ethereum is preferred by several big organizations like JP Morgan and Microsoft, and they have started supporting the products of ethereum. This implies that they use ethereum’s blockchain, and they will develop blockchain-based products; this, in turn, might keep high demand for ETH, and in the future, the price of ethereum can increase in value. Moreover, these big organizations can use the network to develop their products as well as services. This will benefit ethereum, and it might become accessible by the users, and more people will move towards investing in ETH.
