Ethereum is one of the most promising cryptocurrencies and may take the throne away from Bitcoin in the near future. But is it now an opportunity to invest in Ethereum?
Since its launch, Ethereum has steadily gained popularity and is catching up with its bigger rival, Bitcoin. Ethereum price has risen sharply since the beginning of 2021, and 2022 maybe even more promising. Here are some major facts encouraging to invest in Ethereum:
Ethereum Price History
In 2014, Ethereum launched the native token Ether as an ICO (Initial Coin Offering). Approximately 50 million ETHs were sold at a price of AU$0.43 per coin, raising more than AU$22 million.
From 2014 to 2016, prices remained in the range of AU$1 to AU$30. The ETH price reached around AU$ 550 in June 2017. By January 2018, ETH prices peaked at AU$ 1,950. However, it took about 3 years to touch this price again. The price of ETH recorded a new high and reached around AU$6700 in November 2021.
According to the Ethereum chart AUD, it is now trading around AU$4,096.21 (at the time of writing). At this price, Ethereum fell 17% from its all-time high but still rose more than 419% since its inception in 2021. Statistically, the price is showing a lot of potentials to increase.
Ethereum is the most popular crypto and can be traded in many different cryptocurrency exchanges, including TimeX. Some expert traders and investors are assuming ETH prices to rise over the long term as some major updates are coming in the near future.
However, if Ethereum breaks all the ground in the coming years, it will be great for the cryptocurrency industry. There may be the possibility of overturning Bitcoin with that potential.
Ethereum 2.0 Update
Ethereum 2.0 update is likely to be completed by late 2022. Once it is complete, Ethereum will shift from the current Proof of Work (POW) to the Proof of Stake (POS). POS is an environment-friendly system. In POS, miners will not need energy-intensive mining. Instead, the staked Ether will be secure to validate transactions. Ethereum 2.0 update will offer:
- Higher scalability, security, and sustainability.
- Enhanced network bandwidth
- Increase network bandwidth
- Fast transaction speeds.
- Reduce gas costs
- Staking to get rewards by verifying blocks
Ethereum now can process around 15-45 transactions per second. After Ethereum’s update, energy consumption will be reduced by about 99.95%. It will significantly speed up transaction times.
The developers of Ethereum claim that the update network will have the ability to complete the transaction process up to 100,000 per second. It will surge the possibility of widespread adoption of Ethereum. Some experts argue that Ethereum’s price will increase significantly after the Ethereum 2.0 update.
The Future of DApp Marketplace
The Ethereum blockchain hosts various decentralized applications (DApps). The most popular DApp include DeFi and NFT marketplaces. Ethereum blockchain is an open-source network. So, developers can also create new blockchain projects. It opens up virtually endless possibilities for Ethereum. Most DApps involve ETH. So, if one of the DApps is widely accepted, ultimately, Ethereum will be beneficial.
Decentralized Finance (DeFi)
DeFi companies offer loan facilities on Ethereum through blockchain smart contracts. A smart contract is a simple program stored on the blockchain that is executed when predefined conditions are met.
For example, you can offer any amount of ETH from your holding as a loan. The smart contract will provide security, and you will obtain interest on the loaned ETH in return.
DeFi has a short history and is likely to grow as an independent industry. If the popularity of DeFi continues to grow, so may ETH. So, it will be good to pay attention to the DeFi update.
Non-fungible Token (NFT) Marketplace
Lately, the role of NFT has become significant in the Metaverse ecosystem and play-to-earn gaming facilities. Both crypto investors and non-investors are boarding on this new model. NFT Marketplace provides a rich interactive experience. It allows users to quickly tokenize their assets, display the list of marketplaces to resell them.
Many NFT games have already generated millions of dollars through blockchain development. On the other hand, airdrops and asset distributions become much more freely and fairly than ever before. If NFT marketplaces grow, it may lead Ethereum to victory.
The future of Ethereum looks promising, but there is no guarantee that it will perform well in the long run. Cryptocurrencies are still speculative, and it is still debatable whether they can be a solid investment in the long run.
Ethereum has experienced a lot of volatility in the short term, even though it has recently hit record highs. With the introduction of Ethereum 2.0, the ups and downs are likely to increase. However, next year could be a big year for Ethereum, and investing now may be a wise choice.
Interesting Related Article: “Ethereum becomes second biggest cryptocurrency by market cap, overtaking Ripple“