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HomeNewsCryptocurrency Ether Soon to be Worth $ 20,000? From Investing.com

Cryptocurrency Ether Soon to be Worth $ 20,000? From Investing.com




Investing.com – If you had the guts and a few euros after the correction in the crypto market from May to July can already look forward to a whopping return of just over 90 percent. However, entry directly at the bottom is rarely the case. In this respect, the 90 percent should of course only illustrate what an enormous run Ether (ETH) has experienced since reaching the correction lows in July.

Ethereum course current

The cryptocurrency peaked at $ 4,178 on May 10 and then continued to decline. But then a dynamic recovery set in after the July 19 low of $ 1,720.51. By August 23, Ethereum had rebounded to $ 3,343.63.

The one that started the year at $ 735 was quoted a strong 357 percent higher at $ 3,336.92 in mid-August. on the other hand, only achieved an annual increase of 70.9 percent, but recently cracked the $ 50,000 mark again, which some analysts see as a transition point for a BTC rally to the record high of around $ 64,700 reached in April.

With a market capitalization of 391 billion dollars, Ethereum’s native cryptocurrency ETH ranks second in the table of the world’s most important cyber currencies, ahead of (90.84 billion dollars) and (84 billion dollars), but behind Bitcoin (943 billion dollars).

How the course of Ethereum will develop in the future cannot be said with certainty, but many experts and investors are already making predictions.

However, longer-term future forecasts should always be viewed with skepticism, because there is no guarantee.

There are several factors influencing the cryptocurrency market, including government regulations and comments from famous people.

We analyze whether Ethereum’s ETH is attractive for new investments in times of increasing digitalization and what price development you can expect at ETH in the coming months and years Ethereum price forecast. We look at possible Ether course goals and dare one Ethereum outlook.

Ethereum price forecast

Ethereum’s Ether could soar to $ 5,633 by the end of 2021 and $ 11,063 by the end of 2024, CoinPriceForecast believes. According to the forecast page, the cyber motto should not reach the $ 20,000 mark before 2031.

The developers at WalletInvestor are somewhat more pessimistic, forecasting the ETH rate at $ 5,500 in one year and at “only” $ 14,275 in five years. Based on the current price level, this would correspond to a five-fold increase.

The forecast model developed by Digital Coin sees the Ethereum rate at the end of 2021 at $ 4,678, followed by an increase to $ 5,844 in the following year.

In 2028, the platform estimates the ETH price at $ 14,666.

What is Ethereum

Ether was launched in 2015 as a programmable blockchain. Although Bitcoin uses blockchain technology to manage monetary transactions, Ethereum – the protocol for developing decentralized applications – is currently the most widely used blockchain. The technology on which the Ethereum protocol is based is state-of-the-art and offers a number of uses that go beyond the storage and recording of transactions.

Current research by Stefano Ferretti and Gabriele D’Angelo from the University of Bologna in Italy makes this clear:

“Ether is the fuel in the Ethereum network. Every transaction on Ethereum is carried out through a payment by the platform’s customers to the virtual machines that carry out the requested operations. This makes a range of applications possible, from the exchange of cryptocurrencies to financial applications, the Storage and management of tokens and digital assets, notary systems, identity management, voting systems and applications that require the traceability of resources and assets. “




At the beginning of February, the CME Group (NASDAQ 🙂 then launched futures contracts. These are legal agreements to buy or sell ether at a predetermined price at a later date. Thanks to futures contracts, institutional investments in ETH are also likely to increase in the future. Of course, this regulated market also improves the future prospects of the cryptocurrency.

NFTs give Ethereum a boost

Non-fungible tokens (NFTs) are among the latest fads and investment hypes in the cryptocurrency market. These blockchain-based crypto tokens act as proof of authenticity and ownership for virtual or physical assets. This is how a work of art or collector’s item is “tokenized” and the digital ownership certificate is ultimately bought and sold.

NFTs are not fungible because there are no two identical NFTs. So they are not interchangeable with each other. Currently, most NFTs are digital and any digital collectibles could potentially be bought or sold as an NFT. For example, the clothes for an avatar in a video game – these could be available as a one-off NFT.

Take the Italian artist Leonardo da Vinci, who painted the Mona Lisa in the 16th century. If he had created his masterpiece on a blockchain, it would have turned into an NFT that is only worth as much as someone is willing to pay for it.

If you deal with cryptos and NFTs, of course, the importance of the Ethereum blockchain for NFTs must not be forgotten, after all, the makers of virtual objects create the unique and forgery-proof collectibles via the Ethereum blockchain.

Most NFTs have so far been designed using the Ethereum blockchain.

Ethereum and EIP 1559 update

Recently, the highly anticipated Ethereum Improvement Proposal (EIP) 1559 update was implemented, which is a major catalyst for Ethereum. With EIP 1559, among other things, a portion of the fees is now always burned directly.

Some of these fees are no longer paid to miners, but are “burned” or taken out of the total supply of ETH tokens. This leads to a new scarcity effect on Ethereum.

“Since the basic fee is burned, a higher Ethereum demand can lead to a lower supply. In this way, the incentive to spend ETH is reduced in the short term, which is why the fees can cool down and the supply can rise until equilibrium. Thus, EIP-1559 creates a kind of dynamic monetary policy, “the data analysts at IntoTheBlock wrote in a note in front of Ethereum’s London Hard Fork.

In any case, this leads to a lower number of outstanding ETH tokens. This is similar, but not exactly the same, as share buybacks. They reduce the number of shares outstanding and drive up the share price. According to the law of supply and demand, this should also affect the price of Ethereum.

“As this is the first step in reducing Ether’s inflation, it is conceivable that more and more investors will see its potential as a store of value. Ultimately, it would affect the way Ethereum is valued and the chances of flipping increase, “says IntoTheBlock.

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Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.
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