The team at Crypto Lists and everyone else probably noticed the new All Time High (ATH) for Ethereum lately. With wide swings both up and down, we’re going to look about what’s changed with ETH and what’s might be next in terms of levels.
If you love action, then Ethereum is one of the most volatile coins with the biggest user base and daily turnover. Cryptocurrencies have had a wild ride over the past year, with Bitcoin reaching meteoric heights and then crashing down to earth. But other currencies have seen similar highs and lows – including ETH, which just reached an all-time high this week. It ranks in the top 3 cryptocurrencies worldwide and has great potential for exponential growth. So what’s next for ETH in 2022? And is it a good investment opportunity right now?
The ETH Trend: New All Time High and Falling Back
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- 1 The ETH Trend: New All Time High and Falling Back
- 2 Ether will likely be worth more than $8,000 by the end of 2022
- 3 What is ETH 2.0?
- 4 How Does ETH 2.0 Work?
- 5 What Does ETH 2.0 Mean for Ethereum?
- 6 Is ETH 2.0 Already Available?
- 7 7 Benefits of Trading Ethereum
- 8 Pros of Eth 2.0
- 9 Cons of Ether 2.0
- 10 The Future of ERC-20 Chain
Cryptocurrencies have had a wild ride over the past year, with Bitcoin reaching meteoric heights and then crashing down to earth. But other currencies have seen similar highs and lows – including ETH, which just reached an all-time high this week. It ranks in the top 4 cryptocurrencies worldwide and has great potential for exponential growth. So what’s next for ETH in 2022? And is it a good investment opportunity right now? While Bitcoin has been grabbing headlines lately, ETH is the second most valuable cryptocurrency globally. It has a ton of potential for becoming an even bigger player in the next few years. Its advantage is its flexibility in smart contracts and all kinds of programmable functions. So what are some next levels for ETH? Let’s take a look.
Ether will likely be worth more than $8,000 by the end of 2022
Currently the second most valuable cryptocurrency worldwide (after Bitcoin), ETH is poised to become even more important and valuable in five years. There are no technical limitations that would impede its success; it simply comes down to how much people value what Ether can do. On a more specific level, the Goldman Sachs Group, Inc predicts that the price of one Ether will be higher than $8000 by the end of 2022, $10000 in 2023, and more than $16,000 by the end of 2025.
In another report, Panigirtzoglou wrote that the price is around $3900 per coin and has fallen down from $5000. The report predicts that ether has the potential to reach prices over $8000 per coin in 2022, according to analysts following the project and the market. That would be a potential increase of more than 1000% from its current price, which makes it an even more attractive and potentially lucrative investment for us to consider.
More and more entities and large companies are adopting the ETH blockchain to run smart contracts. The protocol is maturing faster than originally thought possible, and Ether has great potential to reach saturation point in the upcoming years. This will be possible, especially after ETH reaches full-scale development, which is happening right now.
What is ETH 2.0?
ETH 2.0 is the most prominent phase of ETH, which has seen significant changes and improvements to the network. The goal of Ether 2.0 is to create a more scalable and efficient blockchain that can handle more transactions per second (TPS) than the current version of ETH.
How Does ETH 2.0 Work?
Ether 2.0 uses a proof-of-stake (PoS) consensus algorithm instead of the current proof-of-work (PoW) implementation that ETH uses currently. PoW requires miners to compete for rewards, which leads to enormous energy consumption and mining centralisation. Switching over to PoS has made it possible for ETH to scale much more efficiently, which is a very important step if ETH wants to become the dominant smart contracts cryptocurrency.
PoS also makes ETH transactions faster and cheaper than they previously were, as PoS doesn’t require any additional energy consumption from miners that PoW does. In addition, PoS allows for creating decentralised autonomous organisations (DAOs), which is a major step forward for ETH.
What Does ETH 2.0 Mean for Ethereum?
Ether 2.0 means that Ethereum is ready to scale and become a more efficient and powerful blockchain. The switch to PoS makes it possible for ETH to handle more transactions per second, which is essential if ETH wants to compete with Visa and PayPal. In addition, Ether 2.0 will allow for the creation of DAOs, leading to a whole new wave of innovation on the ETH blockchain.
Is ETH 2.0 Already Available?
The earliest that Ether 2.0 featured in the market was in 2020. While people had hoped it would quickly get into the market, it took some time for the network to achieve its capacity and become fully scalable fully. Today, Ether 2.0 is complete and has been for some time, with smart contracts now available. It is currently live on the testnet, with holders staking more than 8 million ETH. Towards the end of 2021, there will be more than 118 million Ether 2.0 in circulation, and there is no supply cap on the crypto. According to most people, it is set to decline by 2% annually.
7 Benefits of Trading Ethereum
ETH has undergone several growth phases, and we can expect to see more growth in the future thanks to Ether 2.0 and other advancements the network has made over time. The Ether blockchain is powering numerous platforms and concepts right now, which means that this cryptocurrency could reach a market saturation point relatively soon. Here are some benefits of trading Ether.
1. Crypto Trading is Multi-faceted
One of the main reasons Ethereum has seen such tremendous growth over the last year is that it’s traded in multiple forms. Not only do traders trade ETH tokens, but they also trade the Ethereum Index (ETHI). This allows investors to track Ether’s price movements against major fiat currencies like GBP and USD.
2. Ether is a Cryptocurrency
Ether has become one of the world’s leading cryptocurrencies, and its price has increased significantly over the past year, turning it into a very profitable trading opportunity for cryptocurrency traders worldwide.
3. ETH is a Blockchain Platform
ETH is not just a cryptocurrency; it’s also a blockchain platform that allows developers to create decentralised applications (DApps) that run on the blockchain. This makes ETH a very valuable asset for traders as it has the potential to become the world’s leading smart contracts platform.
4. ETH is Traded on Multiple Exchanges
ETH is traded on a number of the world’s leading cryptocurrency exchanges, including Binance, Bitfinex, Kraken, and Coinbase. This allows traders to get in and out of positions quickly and easily, which can be very important when trading volatile cryptocurrencies like ETH.
5. ETH is a Volatile Asset
Like most cryptocurrencies, ETH is a very volatile asset, and its price can fluctuate significantly from day to day. This makes it a high-risk, high-reward investment for traders who are willing to take on the risk to earn large profits potentially.
6. ETH is a Digital Asset
ETH can be stored and traded using several different digital wallets as a digital asset. This makes it convenient for traders who want to store their assets in a secure location and trade them at any time, from anywhere in the world.
7. ETH Has a Diverse Market
Lastly, ETH has a very diverse market that includes traders from all over the world. This makes it an exciting and dynamic asset for many different traders and investors to trade. In addition, Ether is available on multiple exchanges, which allows traders to invest in the markets they prefer.
Pros of Eth 2.0
Below are some of the main pros of Ethereum 2.0.
The switch to PoS has made it possible for Ethereum to become more efficient. This is because Ether miners no longer have to compete, which means the network won’t experience enormous energy consumption or mining centralisation that ETH previously faced.
Cheaper & Faster Transactions
This is perhaps one of the most important factors that investors look for in an investment. The switch to PoS has made it possible for ETH to become cheaper and faster than ever before, which all cryptocurrency users look for in a blockchain protocol.
Developing DApps on ETH2 Is Exponentially Easier
The addition of smart contracts on the ETH 2.0 blockchain makes it easier to develop DApps on ETH than ever before. This is because developers no longer have to worry about using Solidity (ETH’s programming language) to build their applications, which can be time-consuming and difficult for new developers to pick up.
No More Broken Contracts
Another big advantage of the switch to PoS is that smart contracts will no longer be broken. This happened a few times in the past, which was a huge issue for ETH as it made people wary of using smart contracts. However, ETH 2.0 has now fixed this issue and ensures that broken smart contracts will no longer happen.
More Scalability, Less Centralisation
The switch to PoS has made it much easier for ETH to scale and achieve mass adoption. This is because the number of miners mining on ETH 2.0 isn’t as big as it used to be, which means there will not be any huge centralisation issues that could occur in the future.
Cons of Ether 2.0
While there are many advantages to Ethereum 2.0, a few disadvantages should be noted.
Not Everyone Is on Board With Ether 2.0
Not everyone is on board with Ethereum 2.0 and ERC-20, and many people are sceptical about it. This is mainly because decentralisation will be lost as validators gain more power. In addition, some people feel that the blockchain should have been restructured from scratch.
ETH2 Will Take Some Time to Reach Full Adoption
As with most Blockchain 3.0 upgrades, it will take some time for Ether 2.0 to reach full adoption. This is mainly because many people still run ETH 1.0 nodes, and not every wallet supports the upgrade (especially older ones).
The Future of ERC-20 Chain
While Ether 2.0 is the future of ETH, that doesn’t mean that ERC-20 tokens will disappear. Many of these tokens will likely move over to the new blockchain and continue to be used. This is because the Ether 2.0 blockchain is not backwards compatible with ETH 1.0, which means tokens will no longer run on the old blockchain.