Created in 2013, not long after Bitcoin took the world by storm, Ethereum is an open-source platform used to develop and implement decentralized applications using blockchains. Though Bitcoin remains the most highly valued cryptocurrency on today’s markets, Ethereum is catching up fast. No one can predict the future, but crypto investors and traders can read on to find out what experts think they can expect from Ethereum as it continues to grow.
Simplifying Worldwide Payments
The Ethereum network is unique in that it supports the development of new applications on its infrastructure. Ether (ETH), the platform’s cryptocurrency, can be used to pay for all kinds of novel transactions, giving it a much higher utilization rate than bitcoins. While bitcoins are just digital tokens representing value, Ethereum and ether fuel one another’s success in a way that can’t be matched by more traditional cryptocurrencies like Bitcoin.
Though Ethereum appears to be poised to overtake Bitcoin in terms of popularity and usability in the near future, investing always comes with some risks. Learning what to expect from the platform will make it easier to develop a reasonable risk tolerance. Investors who want to learn more about the key underlying differences between bitcoin and ether before putting their money with their mouths are can learn more about ethereum at Coinbrary.com.
Value Increasing Compared to Bitcoin
While all cryptocurrency markets tend to be volatile, Ethereum seems to be faring better than Bitcoin and bouncing back faster following crypto crashes. Investors should make sure they’re seeing the forest for the trees, too. Over the last 12 months, ether rose in value by nearly 1,000%, while bitcoin only experienced a roughly 300% increase in value.
Let’s take a closer look at the numbers. Ether rose in value from $125.63 to $729.65 in 2020, growing by nearly 500%. In 2021, its value has generally ranged from between $1,700 and $2,500, though it briefly rose to $4,380.
There’s no saying for sure how ether and Ethereum will close out the year, but most market experts are feeling bullish. Target prices range from $3,500 to $4,500 by the year’s end, and long-term projections are looking even better. Experts believe the value of ether may rise to $11,170 or more by 2025, and some particularly optimistic experts believe ETH could rise in value to $100,000 by then.
System Upgrades Drive Long-Term Feasibility
Ethereum has some serious upgrades in the works right now, but the one that investors are viewing as the most promising is EIP-1559, a massive change to the platform that will overhaul its transaction fee system. Once the change goes into effect, users will send fees to the Ethereum network instead of miners, reducing overall supply and increasing the value of ETH.
Ethereum is also working hard to take a sustainable approach to cryptocurrency that will be able to withstand future government regulations. Should government regulations go into effect, as is likely, it could increase market stability and lead to the mass adoption of Ethereum as a leading cryptocurrency.
Invest Now
There has never been a better time to invest in ether. The future of this unique cryptocurrency, which was once considered an underdog, is looking bright, and there’s every reason to believe it could surpass the iconic Bitcoin in terms of value in the next few years. Just make sure to pay attention to market changes and crypto news to see how it fares.