While Ethereum has seen many technical improvements over the years, the past few months have flashed a few signs that change is needed.
ETH Gas Station data shows that the cost of transacting on Ethereum has been higher than normal over the past six weeks, with it costing upwards of $0.40 for an ETH transfer and a handful of dollars for certain smart contract interactions.
While this may not sound like a lot of money, high fees crowd out smaller holders. For instance, a user with $100 wanting to interact with a decentralized finance smart contract may instantly lose two percent of his holdings to fees.
There are also some that have begun to criticize Ethereum’s block times, which while faster than Bitcoin, may still be slow for some applications.
Yet a researcher has observed that we have entered a new era for Ethereum tech, boosting the usability of the network and likely the price of ETH.
A new era for Ethereum technologies
According to research firm Messari’s Wilson Withiam, a researcher, “The building blocks are in place to usher in a new wave of next-generation Ethereum apps.”
The “building blocks” he cited were technological and infrastructure ones, which will decrease friction in sending transactions while increasing usability. Withiam included mentions of:
Optimistic Rollups, which migrates transactions off-chain but is still secured with Ethereum.
Decentralized oracles such as Chainlink.
Ethereum Improvement Proposal 1559, which proposes to burn a portion of transaction fees.
Sharding, activated through Ethereum 2.0.
Boosting DeFi
A key facet of the Ethereum ecosystem that these technological improvements will help is decentralized finance, better known as DeFi.
DeFi has been branded as one of Ethereum’s killer use cases, but Multicoin Capital’sKyle Samani sees its growth petering out.
He wrote in a blog post that DeFi is currently reaching a “plateau” due to the slow Ethereum block times, which disallows blockchain financial applications from emulating finance built on the base internet. There are also issues with high transaction cost, Samani suggested.
The technological improvements that were outlined by Withiam could amend these issues.
ETH could benefit
In isolation, Withiam argued, technological improvements or difficulties do not have a macro effect on the price of a cryptocurrency. Yet this may be different for Ethereum, which may garner “novel use cases” due to the development of the network, be that through EIP-1559, Ethereum 2.0, roll-up technology, or etc.
The Messari analyst explained that the “novel use cases that arise” have the potential to do one of two things, both increasing demand for ETH (and thus its price):
Ethereum may become more usable as a form of money with these upgrades. This was likely in reference to how improvements like sharding and stateless clients can dramatically increase transaction speeds and limit transaction fee friction.
Demand for ETH may dramatically increase as new use cases of the blockchain garner adoption.
Mentioned in this article
Ethereum Multicoin Capital Messari Kyle Samani
Posted In: Ethereum, Analysis, Edge, Technology
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Experts acknowledge that due to several use cases and its unique blockchain, Ethereum has a stable future, and there is a chance it may perform exceptionally well compared to Bitcoin.
If the buyers cross the Ethereum market value above $5000, the bull run continuation can exponentially increase in 2024. With potential Spot ETF approvals and the Bitcoin Halving effect on altcoins, the price of ETH can reach $10,000.
The Ether price decline today comes ahead of a key Federal Reserve interest rate decision and the U.S. inflation data. In addition, a subsiding accumulation sentiment among Ethereum's largest holder groups is increasing the selling pressure in the Ether market.
ETH Price Predictions: For June 2024, Ethereum price is expected to trade between $3700 to $4000, with significant resistance anticipated between $4000 and $4230; breaching this range could lead to new all-time highs, while $3500 is expected to serve as strong support.
If this pattern continues into 2030, the price could peak around 2029 or 2030, potentially aligning with Wood's price prediction. If Wood is correct and Bitcoin reaches $3.8 million, a $100 investment in Bitcoin today would be worth $5,510 in 2030. This translates to a compounded annual growth rate (CAGR) of over 95%.
Ethereum's chart doesn't support moving to $100k in the coming years. While ETH to $100,000 might happen at a certain point in time, it won't happen before 2030, is what we confidently can say. Here is a path to $10,000 though.
By 2040, the maximum price of the ETH Coin is projected to be around $42,548.51. Our average price forecast for Ethereum is $41,680.87 in 2040. Conversely, if the market turns bearish, the minimum price level of ETH Coin could fall down to $40,575.05 by 2040.
This bullish outlook is based on the anticipated Bitcoin halving event in April 2024 and the increasing adoption of Ethereum in DeFi, NFTs, gaming and the metaverse. According to Techopedia, Ethereum could reach ATHs $6,500 in 2024 and $10,700 in 2025.
In 2015, the year that Ethereum first launched, the price started at around $0.74 and the lowest closing price for ETH was $0.42. The year 2015 was the only time when Ethereum was worth one dollar or less, with the exception of January 2016.
That being said, it is a 100% return from current levels and, therefore, will be a difficult target to hit. The Digital Coin Price Ethereum forecast calls for the market to be relatively flat through most of 2023 but does have an Ethereum Price Prediction of higher levels in 2024, breaking the $3000 level.
Our real-time ETH to USD price update shows the current Ethereum price as $3,556.84 USD. Our most recent Ethereum price forecast indicates that its value will increase by 1.49% and reach $3,609.93 by June 16, 2024.
Ethereum's chart doesn't support moving to $100k in the coming years. While ETH to $100,000 might happen at a certain point in time, it won't happen before 2030, is what we confidently can say. Here is a path to $10,000 though.
Introduction: My name is Tyson Zemlak, I am a excited, light, sparkling, super, open, fair, magnificent person who loves writing and wants to share my knowledge and understanding with you.
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