Will Ethereum Reach A Trillion-Dollar Market Cap By 2023?
With its many practical use cases, Ethereum is the cryptocurrency to watch
- Ethereum is a futuristic digital project with a massive potential
- Experts think that this digital currency is soon going to be the leading crypto
- Crypto charts indicate that this coin is going to hit $100,000 in about three years.
Predicting the trajectory of any asset is usually not as easy, but you can always look at the metrics and recent developments to give it a wild shot.
With Ethereum, it would not be such a wild shot to claim that the price of this cryptocurrency is headed to the skies.
Recent developments and the optimism crypto enthusiasts are showing towards this asset can only mean one thing. The future is bright for Ethereum.
What Is Ethereum?
Ethereum is the second-largest cryptocurrency by market capitalization after Bitcoin. Ethereum was conceptualized back in 2013.
Programmer and computer scientist Vitalik Buterin came up with this idea after learning about Bitcoin and together with Gavin Wood launched Ethereum and had it running by 2015.
Ethereum is essentially a blockchain that allows the creation of decentralized applications (dApps) on it. It is open-source and has its own programming language called Solidity.
The platform also has its cryptocurrency ether or ETH that users use to pay gas fees. Users can develop, publicize and use their applications on the platform while paying gas fees using ether.
Now that you have a brief idea of what Ethereum entails, as an investor, you would want to know the prospects of investing in this project. Most projections indicate that the price of ether is going to rise tremendously.
Thanks to this platform having a lot of use cases, pundits claim that its price could soon surpass that of Bitcoin. Here is why Ethereum will reach a trillion-dollar market cap by 2023.
Ethereum Price Trajectory
Ethereum began its journey in 2015.
At that time, the price of one token was less than a dollar. Ethereum price began picking in 2017, going all the way to past the $1000 mark in January 2018, and then slumping back to below $200 in 2019 following the massive cryptocurrency slump.
It was to later pick up again in 2020 following the footsteps of bitcoin and soared to a high of $3,900 before starting its downward trend again. However, it has managed to maintain its price above $3000 for a few months now in 2021 and seems to be going higher. Here is a sneak preview of its trajectory.
One of the major reasons why Ethereum price has not been shooting as expected is its limitations in the number of transactions that can be completed on the platform. At the moment, users can only complete at most 15 transactions per second.
This is very low considering that other projects are scaling up transactions to thousands per second. Ethereum is countering this by introducing Ethereum 2.0 or Serenity.
Ethereum could reach 1 a trillion dollar market cap by 2023 with an increase in its scalability with the Ether 2.0 upgrade. This upgrade will help the platform scale transactions to tens of thousands per second.
Not only will Ethereum scale up its rate of transactions, moving to consensus proof-of-stake will significantly reduce the amount of energy spent verifying transactions on this platform.
Reduction of energy consumed means that Ethereum will be more environmentally friendly. The gas fee could significantly reduce, but this will attract more users to the platform, and that will mean more value for the platform.
Ethereum could hit a 1 trillion dollar market cap by 2023 as more traffic comes to its platform, the price of Ethereum could potentially reach the $10,000 mark in three years.
Additionally, a lot of users are now flooding the platform to develop DeFi instruments such as loans and other financial instruments replacing the traditional role of banks with blockchain protocols.
These projects are helping Ethereum’s price to soar higher. Non-fungible tokens or NFTs are also helping increase traffic on the Ethereum network. The future of finance is slowly shaping up and it’s doing so on the backdrop of the Ethereum network.
Smart contracts and decentralized applications are not the only things that this platform is capable of supporting. Crypto developers are also able to launch new projects and create new ERC-20 tokens.
A lot of such projects have already been launched through initial coin offerings raising massive amounts of money as capital.
Keep in mind that all of the tokens have to pay using ether to develop and maintain their projects on the Ethereum platform. Now, with the upgrade to Ethereum 2.0, these projects are about to become even massive and Ethereum will reach a trillion-dollar market cap by 2023.
What The Experts Think
Several Ethereum experts believe that Ethereum is the future of cryptocurrencies.
While not only a store of value and a means of exchange as bitcoin, Ethereum has by far other practical use cases thanks to its structure and properties.
Angel investor and experienced trader Joe McCann speculates that the price of Ethereum could go well over $50,000 by March 2022. Yet another expert, Anthony Sassano, who is also an Ethereum developer and the co-founder of ETH hub, thinks that Ethereum is likely to hit $15,000 by the year 2023 making it a trillion dollar market value.
That is just less than two years from now.
Simon Dedic, a venture capitalist and blockchain developer, is positive about Ethereum's future. He thinks the price of Ethereum will hit the $10,000 price in 2023-2024. If he is right then Ethereum will ultimately reach the trillion dollar market cap.
While these are just personal opinions and predictions, they are from experienced traders in this industry and carry a lot of weight. Past predictions from such experts have largely turned out to be true, and yet there was limited knowledge then.
Now that these experts are more experienced and with a better understanding of this industry, their predictions could mean a lot more.
So, should you go ahead and invest in Ethereum? The most likely response here is that you should give it a shot. This token has already had a high of $4,400, before dropping down due to the general drop in all cryptocurrencies. The digital coin has since recovered and seems to be doing well. Ethereum has all the likelihood of hitting $10,000 by the end of this year, and could then reach the skies from there seeing that it is a very dominant cryptocurrency. Few would dare say, even more, dominant than bitcoin.
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