Even though most of the cryptocurrencies have collapsed from their all-time high prices in April, most are up by 200 percent to 300 percent or more now. However, Bitcoin is making up headlines and still, there are many concerns that are surrounding its volatility. But what about Ethereum? Any ideas?
Ethereum was conceptualized in 2013, which is an open-source platform that helps to develop and implement new decentralized applications using the same concepts as such as of blockchain.
But when we look at the differences between Ethereum and Bitcoin, both the cryptocurrencies have caught the attention of the major market players such as Goldman Sachs noted to its inventors. Ethereum has a great chance of passing the US$660 billion in the cryptocurrency market capitalization of Bitcoin.
Ethereum shows more promise because of its real-world applications that have the ability to store great value. For this, the cryptocurrency represents the future of programmable money and in the form of smart contracts in a way, that legacy cryptocurrencies like Bitcoin cannot.
The Ability to Simplify Payments
Ethereum is the only cryptocurrency that is capable of simplifying worldwide payments. This is because it supports the development and allows the creation of new applications on its infrastructure, becoming a valuable resource in the long term. Ether (ETH) is used to pay for those transactions and is also seeing the booming popularity of NFTs this spring. There is a great scope of ether as most of the transactions are made using this cryptocurrency rather than Bitcoin in the last 12months.
Even though there was a dip in cryptocurrencies, ether rose about 1,000 percent over the last year when compared to the 300 percent increase to Bitcoin. But when we look at Bitcoin on the other side, it is purely a token of value that is a currency backed by the perceived value of those who hold it whether it be Ethereum and the ETH blockchain fuel one another. The Ethereum network is helping it to increase much faster and reduce the cost of transactions on the network thereby increasing the price of the tokens up.
Even Ethereum based apps are also booming like never before. The most common types of apps being in use are DeFi which saw about 2,000 percent growth in 2020, with more than US$16 billion in crypto assets stored in its protocols through the year-end.
What is the Future of ETH?
Ether was at US$125.63 in 2020 and grew by nearly 500 percent by the end of the year of US$729.65. In 2021, it reached US$4,380 but also ranged between US$1,700 and US$2,500 since then it has been volatile.
But did you ever think where ETH will be at the end of 2021? It is expected to reach between US$3,500 and US$4,500 by the end of this year and is to reach US$11,170 by 2025. Most of the experts are predicting that ETH could rise as high as US$19,842 by 2025 and by the end of 2022 it could be the most transacted cryptocurrency in the market.
Take Away
Ethereum represents a sustainable, function-oriented approach to cryptocurrency that can support the future of DeFi too. But most people wait for government regulations to be implemented. In a nutshell, many changes in cryptocurrency are good and when the markets are regulated they become even safer for users.
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