What is Ethereum?
Blockchain, for purists, represents perfection, efficiency, independence, and transparency. These are ideals through which centralized systems are supposed to be built on. However, that has not been the case. The failure of banks to protect the user was incensing and led to the creation of Bitcoin, the most dominant in the crypto market.
Bitcoin, the most valuable digital currency, isn’t perfect. One can be its own bank through it but that’s about it. This led to Ethereum. But Ethereum is much more than Bitcoin in terms of utility, adaptability, and speed. While speculators forecast that Bitcoin will be a store of value, supply and demand indicators reveal that Ethereum will likely morph into a world computer.
By August 2014, Ethereum had raised $18.4 million via an initial coin offering. They completed their test net, Olympic, in May 2015 and went live two months later in July 2015 with Frontier. But the first true “stable” Ethereum was Homestead which was activated roughly a year later in March 2016.
Because of developers’ forecast and a prediction of a future shaped by the pure utility, a noteworthy development in Ethereum’s history is the DAO hack of June 2016. On that day, 15% of the network’s flexible total supply was siphoned because of an Ethereum smart contract exploit. This theft depressed ETH price but soon after, the price recovered, performing spectacularly over the years.
Because of difference in ideology–and whether the best course of action was to recover stolen coins through a change in consensus, or hard fork, formed Ethereum Classic.
Code-improvement wise, there has been a major milestone. The first was Homestead, but it wasn’t until 2017 when Byzantium was activated. Later Constantinople and Saint Petersburg saw the hardening of Ethereum miner rewards, the introduction of code that reduces the cost of smart contracting, and other features while Ethereum network transits to Ethereum 2.0, whose game end, Serenity, could cement Ethereum as a leader in smart contracting and dApp deployment. Most of these features were implemented a year later in 2018.
Underpinning Ethereum is a system of decentralized open-source nodes as it is built or derived on some bits of Bitcoin’s source code. The key distinction is the introduction of a Turing complete virtual machine and smart contracts that enable the execution of code once certain on-chain conditions are met between the two transacting parties.
Because of smart contracts, the development world hasn’t been the same. An Ethereum smart contract is nothing more than a piece of self-executing code that once executed is irreversible, open, and immutable.
Ethereum Price News
Like Bitcoin, Ethereum runs on its blockchain and has its native currency, Ether (ETH). and its own programming language, Solidity. While there are Ethereum tokens that comply with different standards, ERC-20, ERC-1155, or ERC-721—Non-Fungible Tokens (NFT), all fees are paid in Ethereum (ETH).
Even though there is an economic abstraction question that criticizes this model and argues for payment of fees in tokens depending on the activity of the dApp, proponents over the years have dismissed its validity.
Evidently, the Ethereum price is influenced by market forces–since it is an asset like no other. Without adoption or use, there is no value even if millions were initially poured to make this possible. If anything, the future of Ethereum looks solid and ETH has, after initial years of challenges, remained bullish since succeeding years.
Ethereum ushered in new financing models in initial coin offerings, ICOs, immutable dApps, and most recently, decentralized finance (DeFi). DeFi democratizes finance, is open, and owners of Ethereum can borrow in exchange for a stable coin, or earn interest when they lend out their stash.
Even though Ethereum is a success and Ether–a digital currency, valuable, it faces a challenge of scalability—because of too much use, and the Proof-of-Work (POW) consensus model, Vitalik Buterin claims, is energy-intensive. Combined with other factors, this could make it hard to make Ethereum forecasts. There are several Ethereum proposals forwarded to resolve this.
The consensus is that the Ethereum network will shift from a Proof-of-Work to a Proof-of-Stake consensus model which supporters say is energy efficient, secure, and there are additional revenue streams from staking.
Security and centralization questions have been raised, but the Ethereum team is moving on with the idea and by 2023, Serenity, will be the result. Serenity will be a Proof-of-Stake network with Sharding to address scalability. It is imperative this development on Ethereum goes through, for simple reasons: space is heating and competitors are determined.
Tron, EOS, Cosmos, Waves, and many others offer the same benefits as Ethereum. The difference is these networks are scalable, energy-efficient, and have a higher throughput with some platforms claiming to process thousands of transactions per second.
Tron and EOS are front runners. Justin Sun, the co-founder of Tron, is specifically angling to dethrone Ethereum and his platform as emerged as a favorite for gambling. EOS is preferred by gamers, while Ethereum is ahead with DeFi.
Ethereum price stands to crater if the path towards Serenity becomes messy. Already, Tron is testing the DeFi waters with a new DeFi app, DJED.
Ethereum Price Prediction
Despite the trials, ETH’s edge over competitors. Its advantage–now and perhaps in the future – is that of developer participation.
Ethereum competitors are clearly determined, offering irresistible incentives and offers, and capping that up with a compatible virtual machine to clip market share, depressing Ethereum price. Some projects, thanks to incentives offered by Tron, for instance, switched camps. The absence of long-lasting fixes could prove problematic in the near future.
Still, Ethereum is the second most valuable coin after Bitcoin (BTC). As current rates, ETH price is trading at $341 and has a market capitalization of $38,536,188,665 USD. However, the Ethereum price is down over 50 percent from 2020 highs. The year has been turbulent for ETH price and understandably, the analyst’s forecast is bleak.
After soaring to highs of $428 at the start of September, Ethereum price has been making a steady bearish descent as it tests the $500 level. In the state the global economy is in, COVID-19 has opted for the EU to increase cashless payment. This, as a knock on effect, hints at the steady increase of crypto prices as cryptocurrencies become priority over cash payments.
Even though the BTC price, and other cryptocurrencies including Ethereum (ETH), are said to be immune from events in the traditional market, ETH price collapsed, free-falling to lows of $110 in mid-March. The stock and the commodities market were not spared.
Price Prediction 2020
At the depth of Mar 2020 lows, bears prediction was that Ethereum price might drop to 2018 lows of $78 if the situation, determined by the reaction of governments to contain the situation, got worse. Even so, ETH‘s price falling from 2020 highs is nothing compared to price dips of 2018.
Dubbed the “crypto winter”, ETH’s sharp fall in price sent shock waves in the crypto investment community. At peaks, the ETH price was over $1,300. However, a combination of investor disillusionment as most ICO projects proved to be scams, and regulators banning ICOs in some regions, read South Korea and China, caused the price of Ethereum to fall to lows of $78 by the end of the year. The direct correlation most crypto assets have with Bitcoin, the “coupling”, didn’t mitigate the situation and therefore, the fall in price affected altcoins.
Fortunately, ETH price has shown bullish tendencies since the crashes of March and early September. Predictions of a “crypto winter” seem to be thawing as ETH price stabilizes above the $300 mark having found a support level in mid-July.
As of October 27th, 2020, ETH prices have been steadily bullish following the Bitcoin boom that broke the $13k barrier just a week prior. If this trend continues, we will undoubtedly see ETH prices soar past the $400 mark.
At the height of the ICO crypto-mania that pumped digital asset price movements to their all-time high coincided with the approval by the US Commodity Futures Trading Commission (CFTC) of a Bitcoin derivative product, Bitcoin Futures.
The application by the CME and the CBoE were accepted allowing various savvy traders to place daily negative bets on price which sequentially popped the bubble. As crypto price predictions became gloom for enthusiasts, its reverberation period was felt mostly by ETH and token holders across all smart contracting platforms.
At the current price, ETH is reasonably valued. Vitalik Buterin is the poster boy and his historical role and involvement in the project can’t be quantified. His proposals and criticism, despite his age, shape discussions. He’s technically gifted, and that’s the analysis for some, a weakness that Ethereum has.
Although platform development using smart contracts continue with or without his support, Vitalik’s guidance over time impacts price and markets since he not only advises developers, makes proposals but also owns a big chunk of ETH.
Should he sell his portion, critics could interpret it as a vote of no confidence to the project causing others to follow suit and sell their holdings. That’s how significant his position and role are to Ethereum and to ETH coming prices – whether an increase or decrease in trend.
Price Prediction for 2025
The liquidity depth of Ethereum (ETH) and what developers have in mind to resolve scalability make Ethereum a topic of discussion across social media platforms. There are Ethereum (ETH) speculators angling to clip volatility and profit but amid them are true Ethereum (ETH) holders and believers.
Price predictions range from outrageously high to disbelief. Nonetheless, Ethereum price forecast varies across the board but here are leading analysts’ and traders’ Ethereum price predictions:
Tyler D. Coates, the co-author of Hyperwave Theory and the host of Sawcruhteez Streamz, a trader and analyst strongly believes that ETH has bottomed at current rates and can reach highs of $360 by the end of the year.
Another Twitter user, who also claims to be a whale, said Ethereum (ETH) price could top $500 towards by December 2020. $500 is his take profit level.
CloseCross’ CEO and Founder, Vaibhav Kadikar, believes the cryptocurrency will soar to $1,000 in the future because of the platform’s utility. Kadikar’s price forecast is pinned on ETH decoupling from Bitcoin. As developers resolve scalability and transit to a Proof-of-Stake consensus algorithm, demand would push the price of Ethereum (ETH) higher.
Kadikar believes that the price of Ethereum (ETH) will most likely head to the $1000 by the end of 2020 and the POS rollout occurring in the first half of 2020.
The founder of the startup behind SludgeFeed, Russo, is of the view that Ethereum (ETH) price won’t retest its all-time highs until after 2021. Anchoring his Ethereum price prediction is the belief that Ethereum will maintain its dominance in the smart contracting sub-sector.
The price prediction of the CEO of XanPool, Jeffrey Liu Xun, is negative. As Ethereum seeks to activate Ethereum 2.0, in his Ethereum price prediction, his forecast is that ETH will fall back to single digits by the end of 2020.
In an interview with a crypto news outlet, Xun said that Eth 2.0 will require computer science breakthroughs like breaking the CAP theorem and further commented that it’s unlikely to be done by a bunch of JS web developers.
Price Prediction for 2030
In the long haul, the future of Ethereum will be shaped by how fluid it is and how easy it will be to deploy dApps.
While commentators forecast a smooth transition in the next three years, ETH price prediction for 2030 will mostly depend on whether Ethereum will remain on demand, its ability to wade off competition and establish itself as a leader in smart contracting having satisfactorily handled ETH scalability troubles.
In years ahead, analysts also forecast that ETH price influencing factors will be few since by then mining and mining difficulty adjustment, miner disgruntlement will be a thing of the past. Besides, the complete decentralization of the platform and the endorsement of ETH as a utility by regulators are supportive of bullish price forecasts. Currently, BTC and ETH are the only two digital assets with clearance from US regulators, a boost for hodlers, and true believers of the project.
Moreover, projected adoption from companies and even governments will cause market forces of supply and demand to influence price, placing long term price forecast on the green. Scalability remains a big impediment but Ethereum developers are resolute in forging a solution.
Ethereum Price Prediction FAQs
What will Ethereum be worth by the end of 2020?
That price prediction for Ethereum is readiness for the future. Ethereum has utility, is satisfactorily decentralized, and there is developer activity. Ethereum price forecast is fogged by existing challenges around scalability and energy efficiency but developers have resolved some issues over time. Also, the platform is currently the most dominant in dApps development.
While the price forecast of Ethereum (ETH) has been on a roller-coaster sort of ride in Q1 2020, a lot of variables could influence the price of Ethereum (ETH) in the medium term. The current price is enduring bearish activity, but shows an ascending trendline – this would indicate Q4 2020 might see ETH price reach for that $500 mark.
Will the Ethereum Current Price go up?
Serenity is technical and introduces new features as Sharding and Plasma absent in competing platforms. All of them are proposed to resolve Ethereum scalability and stretch the number of dApps that can be launched on the platform. This is key since delays or any postponement would deflate and slow down the price and Ethereum bulls.
Other price drivers include the success of Bitcoin and whether BTC price will inch higher after May 2020 halving. Bitcoin and altcoins including ETH price are positively correlated. If the BTC price edge higher, the price of Ethereum will likely soar as it is the second most valuable coin in market capitalization. This possibility increases the odds of ETH’s upsides than downsides.
Then there is DeFi which is roughly three years old but most are based in Ethereum. ETH is collateral. The more DeFi is used as an alternative channel for financing, ETH’s demand will rise. This is a net positive for holders in the immediate term and a boost now that the number of the total locked value of ETH denominated in USD is on the rise after dropping from over $1.5 billion as per statistics from DeFi Pulse.
Is Ethereum a Good Investment?
Ethereum is a solid platform and ETH is a good investment, and there are many reasons for this.
Ethereum price prediction 2025 is shaped by the foundation of the project and if ETH is worth holding in any portfolio.
Return on Investment (ROI) of Ethereum (ETH) is the first indicator. Even after 95 percent of price falls, early investors are deep in the money. Based on current fundamentals, making price predictions considering what is online is easy.
During its ICO, each coin was changing hands at $0.31. At $158 a pop, that’s a 1,580X increment in five short years and more gains are expected in the future. At price peaks, ETH whales like Joseph Lubin were promoted into the billionaires’ club.
Then the importance of control and censorship resistance is a benefit blockchain present, a benefit now and in the future. Most centralized applications have been accused of censorship, say on YouTube or Twitter where dissidents are blocked. In Ethereum, similar apps can be launched but without censorship.
There is control and data generators are paid for their work. Aside from that, Ethereum drastically expands on Bitcoin and so much more, like asset tokenization, can be done on the network than a naked, smart contract-free blockchain.