Why Ethereum Will Skyrocket

5 Min Read
Last Updated July 23rd 2021

Ethereum (ETH), the second most valuable cryptocurrency after Bitcoin, has successfully outperformed in recent weeks. The crypto has risen over 500% since the beginning of 2021, hitting a series of all-time highs throughout April and May.

However, the recent market crash has affected Ethereum, and it has not come through the drop unscathed. ETH had a price drop of almost 57%, but it is slowly rebounding and is already up 30% as of writing. 

Ethereum is thus rapidly moving towards creating a decentralized suite of financial products for a wider audience to access freely from anywhere in the world. 

Analysts and experts predict that Ethereum will end 2021 with yet another record high, thanks to its recent upgrades. Let us see why Ethereum will skyrocket its value and the factors that drive its growth.

Why Choose Ethereum?

Ethereum is a programmable digital currency that is faster and more flexible. But unlike Bitcoin, Ethereum is not merely a cryptocurrency; it is also an open-source computing platform that supports decentralized applications (dApps) and smart contracts. 

The Ethereum platform has its own programming language called Solidity that enables coders to write smart contracts. The Ethereum smart contract can seamlessly automate thousands of financial products, supply chain processes and is also a building block of NFTs (non-fungible tokens), a booming sector in the crypto space. 

These smart contracts are then used to build fully-fledged applications like decentralized exchanges (DEX) and automated market makers (AMM). Thus, there are numerous potential use cases for Ethereum and its native token Ether. 

It works as the fuel for running commands on the Ethereum network. Additionally, the token also helps developers build and run applications on the platform. Due to Ethereum’s unstoppable growth, investors have continued to pump money into related investment products like Grayscale Ethereum trust. 

Ethereum: Tremendous Rally 

Ethereum kickstarted 2021 with a value of $1114 and kept rising till it hit a record high of $4,362.35 in May. Though ETH experienced a pullback in the recent market crash, it is rapidly rebounding and sits at $2,481.75 as of writing. 

Ethereum continues to be the second-largest cryptocurrency with a current market cap of $288,418,608,345. The team has a lot in store for 2021, which will eventually skyrocket Ethereum's price to new heights. 

Is Ethereum All Set To Skyrocket In 2021?

Thanks to Ethereum’s custom programming language and a huge team of developers, it is poised to be a long-time winner in the market. Apart from all its use cases and real-world applications, it is arguably one of the most liquid investments.

The high liquidity is due to the establishment of trading platforms, exchanges, and online brokerages worldwide. As a result, a user can seamlessly trade Ethereum for cash or any assets like gold instantly, faster with incredibly low fees. 

Additionally, the launch of the CME Ether futures contracts offers institutional investors access to a regulated market. It provides them exposure to price movements and other details without the need to handle the digital asset or even deal with concerns regarding wallets, custodians, insurance, etc. Therefore, it provides institutions a trusted venue to manage risk with price transparency and liquidity. 

Ethereum is showing a bright future ahead as its relatively new proof-of-stake validation concept garners renewed buyer interest from around the world. Let us dig a bit deeper into a few factors that skyrocket Ethereum’s value in 2021.

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Factors That SkyRocket Ethereum’s Price And Demand  

Several factors back up the prediction that Ethereum is going to hit new highs in the coming decades. 

#1. Ethereum 2.0 - A Game-changer For The Network

The Ethereum team announced earlier this year that the most awaited Ethereum 2.0 upgrade is expected to be released later this year. It is intended to ease the pressure in the Ethereum network and make it more scalable, faster, and secure.

Therefore, the ETH 2.0 developers are turning to a new concept known as sharding, which will create 64 new chains on the Ethereum network. This will eventually take the massive amount of data currently stored on Ethereum nodes and break it into smaller groups, stored on more databases.

This will essentially ease pressure on the current system and enable more transactions per second. Along with speed, it makes the network more secure, scalable, and energy-efficient. Finally, once the update is complete, Ethereum will be able to do a wide rollout of smart contract execution. 

#2. The Switch To Proof-of-Stake Concept 

The upgrade will also process the transition of Ethereum’s consensus mechanism to Proof-of-Stake. One of the general criticisms of cryptocurrencies is that they are highly energy-intensive. The new Proof-of-Stake validation can address the growing environmental security concerns. The energy consumption of cryptocurrency mining has made huge waves recently in the market, as significant coins like Bitcoin failed to be energy-efficient. 

In this evolving DeFi space, the Ethereum community is addressing and taking environmental concerns rather seriously, which will boost its adoption tremendously in the coming decades.  

All these will boost mainstream adoption and skyrocket Ethereum as an investable digital asset. 

#3. Real-World Utility 

Unlike other cryptocurrencies, Ethereum is known for its set of real-world use cases. For example, one of the most promising use cases for ETH is Decentralized Finance applications (DeFi). It includes smart contract-powered loans, minting of stablecoins, and decentralized exchanges. 

Further, Ethereum is also powering most non-fungible tokens, which have already taken off this year. Additionally, Ethereum’s smart contracts make it possible to exchange anything of value in a completely risk-free manner. 

Check Out: Five Most Successful DeFi Assets of This Year

Why Is Ethereum Going To Skyrocket? Experts Speak Up

With Proof-of-Stake and ETH 2.0, the Ethereum blockchain is going to skyrocket to meteoric heights in the coming days. Several experts and prominent personalities in the market have opined the same about the ETH price rise.

The most bullish forecast came from Sarah Bergstrand, the Bitbull Capital COO, who says that the price of Ether would hit $100,000 by 2025.

She said, "We are likely to see major upgrades to the Ethereum network this year, and those can be expected to push the price higher."

Yet another optimistic forecast is predicted by YAP Global Founder and CEO, Samantha Yap. She believes that ETH would reach a value of $10,000 by the end of this year.

Read Also: Will Ethereum Make Me Rich In Ten Years?

The Bottomline

Cryptocurrencies have skyrocketed in popularity lately, and this trend shows no sign of decline anytime soon. Furthermore, the rapid growth of Decentralized Finance and the increasing adoption of smart contracts recently have boosted the demand for ETH in the market.

Ethereum, with its move to make the technology energy-efficient, will garner more support from institutions and investors alike in the near future. 

However, considering its recent price increase, upgrades, and institutional interest, it seems that Ethereum is going to skyrocket in the coming decades, establishing itself as a sustainable investment option and ensuring good returns. 

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Read More:

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Is Ethereum Expected to Reach $10,000 or More In The Next 5 years?

Will Ethereum Make Me Rich?

Could This Eco-Friendly Crypto Surpass Bitcoin and Ethereum? 

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