Ethereum is the largest cryptocurrency in market capitalization after Bitcoin. Although both cryptocurrencies each pursue their own goals, the big question remains whether Ethereum has the potential to surpass Bitcoin in the future. View today’s Ethereum price here and take a look into the future.
Ethereum is a decentralized network based on blockchain technology. It was developed in 2015 by Vitalik Buterin. The goal of Ethereum is to support a decentralized way of working together. To automate this, smart contracts are often used. These are digital contracts with agreed agreements that are executed automatically. Ethereum is not supported by a central organization. Actually the same principle as what we see with Bitcoin. Ethereum is open sourced, meaning developers can use the platform to develop decentralized applications. Also called dApps. New cryptocurrencies and crypto tokens can also be developed on Ethereum. Ether is the cryptocurrency of the Ethereum network itself. Users can use ether to transact, store value, and provide collateral. It is good to know that the price of Ether is expressed in dollars.
A frequently mentioned disadvantage of well-known crypto currencies such as Bitcoin and Ethereum is the power consumption involved in the operation of the network. This is because Bitcoin, and until recently Ethereum, use the proof-of-work protocol. Transactions are verified by solving complex arithmetic puzzles. This requires a lot of computing power from computers and therefore high power consumption. Another additional problem is the scalability of the network. Because the verification of transactions is dependent on the computing power of computers, transaction costs can increase considerably during times of congestion on the network, and the speed of the network is slowed down.
To solve these problems, Ethereum 2.0 switched to the proof-of-stake protocol. The computing power of a computer is no longer decisive when assigning verifications of transactions, but the amount of cryptocurrency stored in a node or wallet. The cryptocurrency stored in the wallet serves as a deposit and thus guarantees that transactions are verified correctly. Because computing power of computers is no longer a decisive factor, the problem of excessive power consumption, high transaction costs and network congestion is solved.
At the start of Ethereum 2.0, more than 6 million Ethers were already locked in the Ethereum 2.0 contract. This represents more than 5% of the total supply of Ethers. The number of active validators within the Ethereum 2.0 blockchain therefore approached 200,000. This characterizes the community’s confidence in Ethereum 2.0. It is therefore expected that the rollout of Ethereum 2.0 will ultimately have a positive influence on the price of Ethereum.
Our expectations of Ethereum’s price are positive. The updates to Ethereum 2.0 will be rolled out in phases until 2022. We assume that each update will make the network a little better. These updates will undoubtedly have a positive impact on Ethereum’s price in the coming years. Of course, there is also a danger here, and that is that updates to a network can always cause temporary unforeseen problems. However, this will only temporarily have a negative impact on the price of Ethereum.
The attrition of Ethereum buyers also depends on the performance of the overall crypto market. This year we have seen a fairly short bull run with many cryptocurrencies rising to record highs in the spring. For example, the price of Ethereum reached an all-time high of more than $4,300. Since then, the market picture has turned to a negative trend. The price of Ethereum will certainly depend on whether the overall crypto market can turn this negative trend back to a positive trend in time.
A final important factor on Ethereum’s price expectations is the emergence of alternative competing blockchain projects. Internet Computer (ICP) and Solano (SOL) in particular are projects that could be in the waters of Ethereum. The success of these projects could have a negative impact on the price of Ethereum.
If you want to buy Ethereum directly, first compare different Ethereum providers. This allows you to immediately see from which provider you can buy Ethereum the cheapest.
