Should You Buy Ethereum?
Will DeFi Dominance Make Ethereum a Good Investment in the Future?
Ethereum (ETH) is not only the second most popular cryptocurrency but the second largest digital asset in the world with a market capitalization of $385 billion.
This article takes an overview of Ethereum, the second most valuable digital asset, its core areas of business, and –most importantly for prospective investors – the pros and cons which can help answer the question: Should I buy Ethereum?
Ethereum (ETH) performed extremely well in 2021 having returned 394.44% Year-To-Date (YTD) by October 2021, and has crossed several milestones in the process ($1000, $1500, $2000, $3000, $4000).
Such milestones have seen the crypto trading asset bring huge gains to growth investors who made purchases in the months of March and April 2020 when the price of Ethereum (ETH) traded on March 31, 2020 at a price of $136 and exchanged hands on April 30 for $212.
Selling the crypto asset for $4,891 in November meant that investors that purchased the coin at $136 saw 3496.32% return on their investment and those who purchased the novel token for $212 realized 2207.08% gains on the asset.
Bitcoin (BTC) has soared to new all-time highs in price which makes Ethereum (ETH) price just a fraction of what it’s currently trading for.
Other altcoins such as Tron (TRX), Cardano (ADA), EOS.IO (EOS), and Binance (BNB) have followed in the path of BTC due to positive market sentiments for cryptocurrencies and blockchain technologies.
Ethereum (ETH), unlike Bitcoin, Litecoin and Dash, thrives on its blockchain technology to provide new innovative solutions to individuals and business organizations that want to venture into finance without the help of intermediaries (traditional banking institutions, clearing houses and insurance companies).
Through smart contracts, Ethereum (ETH) has been providing protocols or decentralized applications (dAPPS) in all kinds of platforms such as borrowing, lending, prediction markets, coverage, synthetics and trading.
Inasmuch as Ethereum (ETH) is the first mover in DeFi, it is facing a strong competition from Tron (TRX) and Cardano (ADA), the latter which was founded by a co-founder of Ethereum, Charles Hoskinson, who has tagged his blockchain technology as an Ethereum Killer.
Cardano (ADA) and Tron (TRX) provide the same smart contracts, with ADA still in the process of meeting its roadmaps with a view to achieving a full functionality mode in the not-so-distant future while TRON (TRX) has been providing great numbers in terms of gaining a fair share of the decentralized finance (DeFi) market.
Cardano and Tron (TRX)’s transaction fees are close to $0 which brings strong competition to ETH with many crypto analysts asking questions as to whether Ethereum (ETHs) advantage as the first mover of smart contracts will soon be challenged.
Is Ethereum (ETH) a great investment and will the crypto trading asset continue to soar in 2022 and beyond? Will the smart contract blockchain succumb to the pressures of other competing blockchains which will see the cryptocurrency’s run as the king of DeFi come to an unfortunate end?
Most importantly for prospective investors – what are the pros and cons which can help answer the question: Should You buy Ethereum?
- Ethereum Cryptocurrency at a Glance
- Pros of Buying Ethereum
- Cons of Buying Ethereum
- What Are Analysts And Experts Advising On Ethereum?
- Where Do I Invest In Ethereum?
- The Bottom Line: Should You Buy Ethereum?
Ethereum (ETH) Cryptocurrency at a Glance
Vitalik Buterin and Gavin Wood are widely known as the founders of Ethereum (ETH) together with six others which include the co-founder of Cardano (ADA), Charles Hoskinson.
Programmer Vitalik Buterin proposed Ethereum in 2013 and development was crowdfunded in 2014 and the network went live on 30th July 2015.
Ethereum (ETH) was created to serve the purpose of enabling smart contracts and distributed applications (dAPPS) to be built and run without any downtime, control, fraud or third-party interferences.
Ethereum does not only serve as a platform but also a programming language called TURING COMPLETE which runs on a blockchain and helps developers build and publish distributed applications.
It has its own cryptocurrency which is called Ether (ETH) and it is used inside Ethereum to monetize work and run applications and as well can be traded as a digital currency exchange like other cryptocurrencies.
The supply of Ethereum (ETH) is finite with a current circulation supply of $119,059,744 ETH.
Ethereum started trading on 7th August 2015 at a price of $1.
Since that time, investors have had a great time in terms of awesome rides of bullishness and unforeseen plunges (bearishness) on the part of the cryptocurrency.
Such unpredictability saw several investors make gains one minute and the next minute, losses will follow, all within short amounts of time (minutes, hours, days and weeks).
Like Bitcoin, Ethereum has had its fair share of hacking coupled with the absence of strong regulation made its way into the volatility of the asset’s price. The current volatility of Ethereum (ETH) is 0.82.
Despite these pullbacks and an uncertain future ahead for cryptocurrencies in general in a strictly regulated financial world, Ethereum has exceeded expectations in terms of performance and has so far gone overboard the price of several analysis and experts resulting in great gains for growth investors.
Ethereum launched FRONTIER (which is the tentative experimental release of the Ethereum platform in July 2015. This was considered a beta release for developers to go through an experimentation and development phase with decentralized applications.
A minor milestone called ICE AGE in September 2015 came after FRONTIER which saw the release of 200,000 blocks.
ICE AGE was followed by the performance of ETH and as per data retrieved by CoinTelegraph; this is how the cryptocurrency performed on the market.
Ethereum (ETH) started the 7th day of August 2015 with a trading price of $1, doubled in price on 12th August 2015 to $2 and maintained its trading price throughout the month as well as the month of September.
On 18th October 2015, Ethereum almost bottomed out after falling close to the price of $0 and rebounded to close the year on December 31, 2015 exchanging hands for $1. In the process, there was NO CHANGE in price.
HOMESTEAD is the second major version which was released on the Ethereum platform which includes a networking change and several protocol changes which gives developers the ability to do further network upgrades such as EIP-2 (Main homestead hardfork changes), EIP-7 (Hard Fork EVM update: DELEGATECALL) and EIP-8 (devp2p forward compatibility).
The second most popular and second-largest cryptocurrency by market capitalization began the 1st day of 2016 where it left off in the previous year with a trading price of $1 and reached a new all-time high of $3 on 27th January 2016 before correcting back to $2 to close the month.
With the announcement of the second major upgrade (HOMESTEAD) in the news, ETH responded well to the positive market sentiment in the month of February and reached new all-time highs of $4 on February 8, $6 on February 10 and $8 on February 29 to close the month.
HOMESTEAD was released on March 15, 2016 and released 1,150,000 blocks.
On the 1st day of March, 2016, Ethereum (ETH) traded for a coin at $8, hit a new high on March 12 at $15 and closed the month on March 31 exchanging hands for $12.
The smart contracts asset ended the 1st half of the year and 2nd quarter (June) with a new all-time high of $21 on June 15 and closed the month trading for a coin at $12.
What was to come was extremely shocking for the developers of Ethereum as well as crypto enthusiasts but was a plus for the centralized financial institutions which have had a problem with cryptography ever since its inception in 2008 by Satoshi Nakamoto.
On 20th July, 2016, Ethereum was split into two separate blockchains which are Ethereum Classic and Ethereum. This happened after a malicious actor (hacker) stole more than $50 million worth of funds which had earlier on been raised on the Decentralized Autonomous Organization (DAO) (a set of smart contracts which originated from the software of Ethereum).
The new Ethereum which was unplanned became a hard fork of the original software which had a primary purpose of protecting against further malware attacks.
The king of decentralized finance (DeFi) began the 1st day of July, 2016 trading at $12, with news of the hard fork coming through July 20 not doing much to cause a severe change in the digital asset’s price.
It ended July 31 exchanging hands for $11. ETH declined to $8 to close 2016 on December 31. In the process, there was a 700% increase in price.
The year 2017 was extremely important for Ethereum (ETH) as it released its third major upgrade called METROPOLIS. This upgrade comprised two parts and is considered the most significant for the smart contract network since as Rakesh Sharma of Investopedia puts it “Represents a significant evolution of Ethereum into mass acceptability because of the nature of its changes.”
One of the two was the Byzantium hark fork which was designed to make the network of Ethereum lighter, faster and more secure.
It embedded transaction status code in receipts, enhanced cryptography, reduced and did away with rewards and overall set the stage for widespread use of Ethereum and its smart contracts.
Ethereum began the 1st day of 2017 with a price of $8 and rallied to $261 to close out the first half and 2nd quarter of the year (June).
On 16th October 2017, the Byzantium hard fork came into effect and 4,370,000 blocks were released and took the price of Ethereum to new all-time highs on December 31 at $757. In the process, Ethereum made 9,362.5% gains for investors.
The ban of cryptocurrencies in 2017 by the government of China which was followed by Japan in 2018 meant that parent crypto (BTC) which normally leads rallies and bearishness experienced a bearish season that affected other altcoins such as Ethereum.
After starting strong on the 1st day of 2018 with a trading price of $862, Ethereum plummeted throughout the year, declining to $451 to see out June (2nd quarter) and thereafter closed the year exchanging hands for $142. In the process, Ethereum lost 507..042% of its price and market value.
Constantinople and St. Petersburg upgrades came through on 28th February 2019 with 7,280,000 blocks released for each upgrade and was basically tagged as a maintenance and optimization upgrade.
Once activated, Constantinople and St. Petersburg reduced block reward issuance from 3 to 2 ETH, similar to how the previous hard fork – called Byzantium – reduced issuance from 5 to 3 ETH.
Ethereum (ETH) began 2019 with a trading price of $156 and closed the year with a trading price of $131.
The year 2020 was different from 2019 as ETH started the year with a price of $127.
After the pandemic swept the financial markets in March and April, low prices brought renewed interests in cryptocurrencies and its related products such as decentralized finance (DeFi) applications and protocols. This renewed interest saw ETH soar to new highs to close the year trading for $979.
This time the price was not solely determined by speculation in the form of demand and supply but by tradable tokens (DAPPS) which performed extremely well. Aside from this, the launch of Ethereum 2.0 and institutional investment from the likes of Grayscale (the largest digital asset management firm) helped increase the market valuation of the asset.
The year 2021 has been extremely different with several assets which run on the blockchain leading Ethereum on to reach its all-time high of $4,362 in May 2021.
Some of these assets are yield aggregator (Yearn Finance) which achieved an all-time high of $93,435 in May 2021, decentralized lending platform (Compound) which achieved an all-time high of $911 in May 2021 and decentralized exchange (Uniswap) which achieved an all-time high of $44.97 in May 2021.
Ethereum (ETH) has performed exceedingly well and whatever happens, a fall in price of one of the top-performing applications would be made up for by other DAPPS on the platform.
As a result, Strategist for Fundstrat Global Advisors LLC, David Grider has opined that “Ethereum is the best risk/reward investment play in crypto”.
Let us take a look into the Pros and Cons that makes Ethereum an asset that could be considered for addition to any investors portfolio.
Pros of Buying Ethereum (ETH)
The coronavirus pandemic has had an effect on every industry in the world and cryptocurrencies and blockchain technology are no different. Prices of all assets tumbled at first with parent crypto (BTC) leading the way and altcoins which include Ethereum (ETH) followed.
In 2020, when Trading Education did an extensive study as to the market capitalization of the two most popular and largest cryptocurrencies in September, Ethereum at the time had a market capitalization of $43.9 billion.
Bitcoin (BTC) had a market cap of $195.83 billion which meant that the cap of the two leading assets summed up to $239.73 billion and way below $300 million.
This was supposed to be bad news for the whole crypto finance space but renewed interest in decentralized finance (DeFi) particularly as the second crypto asset of choice by investors coupled with its DAPPS saw the asset hit new highs in 2021.
There are several pros of purchasing Ethereum and most oftentimes, the drivers or advantages of the asset makes a case for it.
✅ Ethereum Thrives on Diversity and NOT Speculation
Litecoin (LTC), Bitcoin (BTC) and Dogecoin (DOGE) do not have any technology which can provide solutions to businesses and organizations aside from being used for checkouts on various retailers globally.
Ethereum (ETH) saw several possibilities in cryptography which was not only limited to sending and receiving digital money over the internet without any centralized authority.
As a result, it became the first mover in the decentralized finance space to introduce decentralized finance (DeFi) applications or protocols which can play an extensive role in bringing great returns to individual users and business organizations.
According to data retrieved from DeFi Pulse (the online portal which provides the latest rankings and analytics of decentralized finance protocols), there is currently $94.09 billion locked-in DeFi.
Not too surprising, the assets with the most amount of money locked-in runs on Ethereum.
Maker (is a decentralized credit platform on Ethereum that supports Dai, a stablecoin which has a value pegged to USD) and it’s extremely dominant with $16.43 billion. Maker (MKR) has a price of $2,201.30, trade volume of $135,182,431 and capitalization of $2.16 billion.
Compound (COMP) is an algorithmic, autonomous interest rate protocol built for developers to unlock a universe of open financial applications that has $8.18 billion locked-in DeFi. COMP has a price of $195.64, trade volume of $159 million and a market capitalization of $1.23 billion.
Uniswap (UNI) is a cryptocurrency exchange system which operates on the blockchain of Ethereum (ETH) and has $8.29 billion locked in DeFi. UNI has a price of $16.10, trade volume of $455 million and a market cap of $10 billion.
AAVE (is an open-source and non-custodial protocol to earn interest on deposits and borrow assets) has $10.80 billion locked in DeFi. AAVE has a price of $213.33, trade volume of $448 million and a market capitalization of $2.87 billion.
Yearn Finance (is an aggregator service for DeFi investors, using automation to allow them to maximize profits from yield farming) has $3.94 billion locked in DeFi. Yearn Finance has a price of $35,788.99, trade volume of $190.4 million and a market cap of $1.31 billion.
Data retrieved from DAPP Review on the performance of decentralized applications in the 2nd quarter (Q2) of 2020 saw Ethereum (ETH) led the way with 85.3% of the market share in terms of volume.
At the time, there were 2,403 DAPPS on the chain, with 768 active DAPPS, 195 new DAPPS, with 1.51 million active users and $14.27 billion in volume.
This gives Ethereum (ETH) a competitive edge in DAPPS not primarily as a first mover but as a smart contracts blockchain which has achieved several milestones which are reaping results for creators and investors.
With the price of Yearn Finance and Maker surpassing ETHs current trading price, if all the other applications rally in the near future, it will reflect in the price of Ethereum and bring huge gains to the cryptocurrency in terms of market valuation.
✅ Ethereum Has Partnered With and Has Numerous Real World Use Cases
Inasmuch as Cardano and Tron are doing well trying to bring competition which would lead to creativity and innovation in the DeFi space, Ethereum (ETH) is miles ahead and are gaining the trust of regular citizens and the centralized finance world.
On Monday, March 29, it was reported that payment processing giant (VISA) has settled a United States Dollar Coin (USDC) transaction on Ethereum and plans rollout to its partners later in 2021.
This was the first time VISA has accepted a cryptocurrency payment in lieu for cash for its services. On responding to the pilot which could become the foundation for mainstream acceptance of crypto-native payment methods, Jack Forestell, Chief Product Officer of VISA pointed out in a press release, “Crypto-native FinTechs want partners [that] understand their business and the complexities of digital currency form factors”.
On Tuesday, March 30, 2021, PAYPAL posted on social media platform (Twitter) using its handle, @PayPal and excerpts of the tweet go, “Today, we are announcing the launch of Checkout with Crypto, a new way for PayPal customers to checkout with #Cryptocurrency to pay for select online purchases”.
In 2020, PayPal made it possible for users across the United States to buy and sell cryptocurrencies directly from their account and this news took adoption and mainstream acceptance of cryptocurrencies with Ethereum (ETH) featuring strongly to a new level.
PayPal has now introduced a new feature called CHECKOUT WITH CRYPTO and this allows users to instantly convert BTC, LTC, BCH or Ethereum (ETH) to United States dollars at no additional transaction fees.
This exposes Ethereum (ETH) to over 377 million active accounts PayPal has control of and this will go a long way to reflect in the price of the crypto trading asset as a result of new use cases.
Non-Fungible Tokens (NFTs) have taken over the crypto finance world. BNP Paribas is the eighth (8th) largest bank in terms of assets under management. Its subsidiary L'atelier prioritizes finding other opportunities in the financial market to make money. Non-Fungible Tokens (NFTs) is one of the areas of patronage.
Inasmuch as Non-Fungible Tokens (NFTs) control 0.15% of the crypto market, most NFTs are running on Ethereum (the world’s most used blockchain).
The biggest NFTs using Ethereum in terms of trade volume and market capitalization are Decentraland (MANA) and Enjin (ENJ).
Decentraland (MANA) has a trade volume of $2.43 million, market capitalization of $5.93 billion and Enjin (ENJ) has a trade volume of $411 million and market capitalization of $2 billion in the last 24 hours.
On Monday, Business Insider reported that superstar artist Damien Hirst will sell 10,000 Non-Fungible Tokens (NFTs) using PALM (a new Ethereum technology). The artist is mostly famous for pickling sharks and encrusting skulls with diamonds.
PALM is a new crypto technology and token which was created by ConSenSys (a developer group at the heart of ETH which works with Art Company Heni Group and Heyday Films).
The developers pointed out that it will be connected to the network of Ethereum and enable artworks to be encrypted and secured in a more environmentally friendly way.
So far, there have been more than $69 million worth of arts sold using this technology earlier in the month of March.
With real-world usage and patronage by BNP Paribas and other artists, with Lionel Richie and Snoop Dogg reportedly showing great interest in terms of investment, NFTs will grow and impact Ethereum’s price.
As a result of real-world use cases, Ethereum has leverage over other smart contract blockchains since several developers as per the usage experience of other developers will love to opt for Ethereum so that they can reach a huge audience, make gains for themselves which will reflect in the gains of investors.
✅ Ethereum Constantly Upgrades its Blockchain
Ethereum’s last upgrade happened on the 5th day of March, 2021 when it approved a major change with regards to how its network was going to run. It was announced that this upgrade will take effect in the month of July or August.
The upgrade is entitled LONDON HARD FORK (EIP-1559) and it will help limit the number of ETHs in supply by doing a great overhaul in the way transactions work.
When a base transaction fee is sent to the network, Ether (ETH) coins will be destroyed.
When ETHs are destroyed, automatically, there will be relatively lesser coins on the market which will lead to scarcity and trigger the basic laws of demand and supply.
Many traders and analysts like Ethereum (ETH) aside BTC not only because of its DeFi dominance but because it has a finite supply. Having a finite supply means scarcity will set in one day. This would make altcoin more valuable than competing digital assets.
Robert Breedlove is the Chief Information Officer and Chief Executive Officer of Parallax Digital and he has opined that “Bitcoin (BTCs) absolute scarcity makes it a perfect monetary technology”. This means scarcity will impact positively on the price of ETH.
Justin d’Anethan of cryptocurrency exchange, Equos, sees growth in ETHs blockchain.
The Sales Manager pointed out that “The changes to Ethereum will not only make the blockchain more eco-friendly, it will also make it more scalable leading to efficient transactions”.
This has seen Coin Price Forecast churn in with regards to how good an investment Ethereum (ETH) will become if it scales faster as a result of its upgrade.
Experts at the online portal for statistical analysis of cryptocurrencies are of the opinion that “There will be a 164% increment in the price of ETH from 2023 to 2027, which would move the digital asset’s price from a forecasted price of $6,274 as at the year’s end in 2022 to a price of $15,474 in the years to come.
If Ethereum (ETH) is able to see all its upgrades through and Ethereum 2.0 become extremely efficient in processing transactions in a fast manner (100,000 transactions per second), the gas fees will decrease substantially which will prevent more developers from leaving the platform and opt for other blockchains.
More developers will be added as well and every activity and gains accumulated will bring awesome returns to patrons of the digital trading asset.
✅ Ethereum Futures Partnership Is Essential for Managing Risks and Losses
Futures are an essential part of the trading of assets as it allows an investor to speculate on the direction of a commodity, security or financial instrument.
According to Jason Fernando of Investopedia, “Futures are used to hedge the price movement of the underlying asset to help prevent losses from unfavourable price changes”.
On 8th February 2021, it was announced by the Chicago Mercantile Exchange (CME) Group (the world’s leading and most diverse derivatives marketplace) Global Head of Equity Index and Alternative Investment Products, Tim McCourt that “As an institutional demand for transparent, exchange-listed crypto derivatives continues to increase, we are pleased to launch our new Ether future contract”.
Traders and investors are now entitled to have an equal ability to use leverage to increase capital, profit from future movements of assets and be able to lessen their losses during bearish seasons.
The CEO of Polychain Capital, Olaf Carlson-Wee is of the belief that Ethereum’s technology (Ethereum 2.0) is currently far ahead of the networks of competing altcoins because it has been tried and tested.
Cons of Buying Ethereum (ETH)
Inasmuch as Ethereum (ETH) is a great investment which is worth any trader or investors consideration, it also has its pitfalls which may see its lose most of its developers to Cardano (ADA) and TRON (TRX) in the near future and in the process may get dethroned as the first mover and king of decentralized finance (DeFi).
There are many cons but among others are:
❌ Ethereum Faces Strong Competition in the Future from Other Altcoins
After Satoshi Nakamoto created Bitcoin (BTC), several others such as Litecoin (LTC) and Dash (DASH) joined the market.
In the same way, after Ethereum (ETH) brought about new possibilities in cryptocurrency and blockchain technology as a whole, Cardano (ADA), Polkadot (DOT), EOS.IO (EOS), Tron (TRX) and Kusama (KSM) have joined the market which has brought saturation.
Competitor Cardano (ADA) ranks number 1 on GitHub (an online portal where more than 56 million developers together shape the future of software).
As per data retrieved from behaviour, analysis and monitoring platform (SANBASE), Ethereum (ETH) was ranked number 4 with 331.33 developer activity in the last 30 days, while Cardano had a developer activity of 538.33 and ranked number 1 while Polkadot (DOT) ranked second with 445.60.
Additionally, Ethereum initially controlled the whole decentralized finance (DeFi) space. Currently, the digital asset controls 85% of the space.
With developer activity not on ETHs side, this means any report released on DeFi in the future will gradually see the first mover lose further ground in terms of dominance of the space.
This is because TRON (TRX) continues to announce more partnerships and Cardano (ADA) continues to accomplish its roadmaps. This will see ADA become fully functional in the near future and have enough real-world use cases which will give strong competition to Vitalik Buterin’s innovative creation.
❌ Ethereum 2.0 Has Not Reached Full Potential
When Ethereum was first launched, it made use of the longstanding SHA-256 proof-of-work algorithm since Bitcoin (BTCs) blockchain became the template the other altcoins thrived on to build their innovations.
Every crypto enthusiast knows the frailties of proof-of-work such as slow processing of transactions which ranges from 5 to 30 per second which does not bode well for a technology solution that aims to be adopted by several individuals and business organizations.
With the launch of Ethereum 2.0 on 1st December 2020, the network was supposed to move away from the old algorithm to a new and improved proof-of-stake (POS) algorithm which introduced a new feature called Sharding.
According to Jake Frankenfield of Investopedia, Sharding is a database partitioning technology which is used by blockchain companies such as Ethereum with the purpose of scalability which enables them to process more transactions per second (TPS).
In addition to this, sharding helps with the reduction of the slowness or latency of a network since it plays a primary role of splitting a blockchain into separate shards.
This upgrade in algorithm is supposed to see Ethereum (ETH) process 100,000 transactions per second (TPS) but this has so far been far from the reality on the network.
With millions of users trying to use decentralized applications (yield aggregator, lending platforms and exchanges), there has been high congestion on the network. Having a congested network leads to a slower pace in the processing of transactions and this directly has an effect on the transaction fees on a blockchain. As per data retrieved from Coindesk, Ethereum (ETH) has an average transaction fee of $16.96 which once reached as high as $23.37 in the month of February 2021.
Such a slow network and transaction fee has brought about a review of the usage of the technology by the founders of decentralized applications CELSIUS and SINGULARITY NET.
Celsius is a decentralized lending platform which is valued at $3.1 billion following independent review from Alpha Sigma Capital, according to CoinTelegraph. As per data retrieved from Coin Market Cap, Celsius (CEL) has a price of $3.30, having recorded a daily volume of $11 million and a market capitalization of $774,050,734.
In December 2020, CEO of Celsius, Alex Mashinsky weighed in on the scalability problems associated with blockchain and pointed out that “The Ethereum network could lose its spotlight if it doesn’t scale quickly and significantly. Ethereum needs to prove it can scale its transactions 100x without compromising on security or decentralization. If it fails to scale, Cardano and Polkadot will take over”.
He added that he is pondering a move to other platforms because “His team of developers is tired of paying $2.5 million in transaction fees annually”.
SINGULARITYNET (AGI) is a blockchain-powered platform that allows anyone to easily create, share and monetize Artificial Intelligence (AI) services, thanks to its globally – accessible AI marketplace. AGI has a price of $0.3002, recorded a trade volume of $3.9 million and a market capitalization of $260 million in the last 24 hours.
Ben Goertzel, AI expert and founder of SINGULARITY NET has pointed out that “The current cost and speed issues associated with the blockchain of Ethereum have increased the urgency of exploring alternatives for SingularityNETs blockchain underpinning”.
The expert further added that there is great promise associated with Ethereum 2.0 but its full functionality remains unclear.
❌ Heavy Government Regulation May Set In
Charles Hoskinson (founder of Cardano) left Ethereum in 2014 after several disagreements with Vitalik Buterin on how the organization should be run.
Hoskinson may have seen a future where cryptography, in general, would gain grounds that would bring forth strong regulation against crypto organizations.
This is the main reason why he wanted some form of centralization with regards to how the whole project would be managed.
Unfortunately, Vitalik Buterin won the battle to maintain the blockchain and its novel token, Ether, as a decentralized organization. If strong regulation sets in, Ethereum (ETH) may not be in a position to have the needed requirements to fully operate since DeFi poses a strong challenge to the duly regulated centralized finance corporations worldwide.
This is an area which may come in to devalue the overall market of all cryptocurrencies which may include Ethereum and this is a factor traders and investors should not ignore when taking decisions with your hard-earned fiat currency.
What Are Analysts And Experts Advising On Ethereum (ETH)?
There have been several price forecasts for Ethereum (ETH) over the years but the second popular and second-largest crypto by market cap have found ways to surpass expectations.
Coin Switch is a cryptocurrency exchange aggregator and forecasts a trading price of $4500 by the end of 2022 which will increase to $15000 by the end of 2030.
Blocktown Capital founder, James Todaro has opined that “Someday, Ethereum (ETHs) value will surpass $9,000.
Prime XBT sees huge gains ahead for Ethereum. The online financial website forecasts a price of $10,000 for ETH at the end of 2022, and a new milestone of $41,000 in 2025.
Ark Capital’s Brian Schuster believes the digital asset’s dominance of DeFi will see it revolutionize the financial world and by 2024, expect the crypto trading asset to exchange hands for $100,000.
The online portal which reports blockchain analysis and cryptocurrency portfolio investments (Crypto Research Report) sees ETH breach the $3,500 mark by the end of 2025.
FXLeaders analyst Skerdian Meta forecasts a price range of $3,500 to $4,000 by the end of the 1st half of 2021, which is backed by positive market sentiment, recovery from COVID-19, increased cash flows and a thriving global economy.
Skerdian Meta further sees huge gains for growth investors (long term) as a result of a great global economy, crypto market and a safe haven status which will take the price of Ethereum (ETH) to $25,000.
Previsioni Bitcoin foresees ETH at the end of the year on December 31, 2022 for $5,862.
Read More: Ethereum Price Prediction for 2025 and 2030
The Bottom Line: Should You Buy Ethereum (ETH)?
Ethereum is likely a good buy. In fact, ETH is more than a good investment. Ethereum’s low entry-level makes it an attractive investment for traders and beginners, as well as long-term investors. ETH is also the right choice for people who simply want to diversify their portfolios.
Remember: There is no crypto asset which is perfect and Ethereum is no different.
As a result of being a first mover in the decentralized finance (DeFi) space, Ethereum has an incredible competitive advantage in terms of investments and usage as the blockchain of choice for decentralized applications or protocols (DAPPS) by developers.
Ethereum promises a great future with more applications to be added, with Ethereum 2.0 to reach full functionality. As a result, there is nothing wrong in purchasing more ETHs now and holding the coins for a very long time to reap the returns on your investment.
Currently, Tron and Eos.io are the primary competitors for DeFi. With more than 85% control of the DeFi market, the two altcoins together with Cardano which is yet to provide DAPPS with real-world usage, will have to do more to dethrone ETH as the king of the space.
This is why those altcoins are currently trading for a fraction of the market price of Ethereum (ETH).
Several analysts believe Ethereum is the key to revolutionizing the current WEB 2.0 and take it to a new level in WEB 3.0 which makes it a BUY in the future. As per fundamental and technical analysis, Ethereum is poised to hit a minimum of $10,000 in the near future.
Put simply, Ethereum is a low-risk investment with lots of potential rewards. It’s something you should definitely do some research on before you consider adding ETH to your portfolio.
The real Ethereum investing question then, does it really work? If you’re willing to invest the time and energy, then for you, it could well do.
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