Like Bitcoin, Ethereum is a separate blockchain that has its digital currency. These two projects have a lot in common. For example, both coins are decentralized. No country or government supports Bitcoin or Ethereum. Besides, both digital currencies are built on blockchain technology, so all transactions are fast, accurate, and transparent.
However, this is where the similarities end. Ethereum technology allows you to do much more than just provide fast digital transactions.
For example, Ether offers smart contract technology. It is a secure way to enter into digital contracts without first establishing mutual trust. Ethereum transfers are faster than Bitcoin, and the blockchain technology of this article’s main coin can handle more transactions than its main competitor.
Most people buy Ethereum speculatively. This means that people are investing in cryptocurrency to make money from it.
Ethereum
ETH, like the rest of the market, is affected by Bitcoin’s price movement. Therefore, when Bitcoin starts to rise, ETH can also hope for it.
With the onset of the pandemic, the world hibernated for several months, which negatively affected cryptocurrencies. The Bitcoin rate began to fall, losing up to 40% daily. However, the situation quickly stabilized, and Bitcoin, as the industry leader, put the crypto market back on track. We have seen tremendous growth since the summer (July-August), and analysts from all sides tell us that the peak is still far away.
While Bitcoin is leading and moving up, ETH usually does the same. Ether will be able to increase its value in terms of US dollars, thanks to the general increase in cryptocurrency prices. ETHBTC is likely to decline. However, Ethereum is one of the top contenders for big growth, as money tends to flow from bitcoin profits to large-cap altcoins and then to lesser-known and smaller projects.
Most projects will fail. Some scam startups are created only to raise money, and then disappear immediately, others simply cease to exist. Most of them are just ideas that look good on paper but are useless.
As a result, more than 95% of successful ICOs and cryptocurrency projects will fail, and their investors will lose money. The remaining 5% of projects will be new Apple, Google, or Alibaba in the crypto industry. Will ETH be part of that 5%? Quite possibly.
Ethereum is the platform on which the vast majority of new startups are built, and these numbers are increasing every day. This means that if another blockchain platform wants to surpass Ether in terms of developer adoption, it will not be enough to match its level. It will have to surpass the growth rate of Ethereum. If you don’t have developers building apps on your blockchain, you’re essentially creating a dead-end project.
The blockchain platform on which most developers develop real-world applications will become the platform with the widest adoption. Ethereum not only has a huge advantage in this area, but it is increasing every day.
Expert forecasts
Tyler Smith, a well-known proponent of Ether, reminded his audience that the cryptocurrency’s previous rally was initiated by the listing of Bitcoin futures on the CME. He believes the launch of Ethereum derivatives could have a similar impact on the blockchain ecosystem.
Another prominent ETH proponent, Ryan Sean Adams, noted that listing Ethereum futures on CME will provide the world’s most famous financial institutions with the opportunity to invest in ETH in a secure and regulated manner. Adams is confident that the launch of ETH derivatives on CME will lead to a sharp increase in the price of Ether and will allow it to set a new record in 2023.
Bitcoin’s massive rally, which recently pushed the price of BTC to its new peak, has also positively impacted Ethereum’s price. Following the announcement of the launch of ETH 2.0 in December 2020, the price of Ether has surpassed $ 625, surpassing the record highs of 2018. The most popular altcoin continues to rise in value.
Earlier, Simon Dedich, Managing Partner at Moonrock Capital, predicted that the value of Ethereum will double after the coin reaches its all-time high. According to Dedic, the asset’s value could skyrocket to $ 3,000.
