building the MetaFi ecosystem to bridge the gap between CeFi and DeFi
building the MetaFi ecosystem to bridge the gap between CeFi and DeFi
27 December 2019, 19:12
2 min reading
With the new year just around the corner, it’s only natural to wonder about the future of the cryptocurrency market. For Bitcoin, all eyes are on the widely expected halving event, but what about the second largest digital currency, Ethereum (ETH)? In the last twelve months, the cryptocurrency market has experienced several ups and downs,
With the new year just around the corner, it’s only natural to wonder about the future of the cryptocurrency market. For Bitcoin, all eyes are on the widely expected halving event, but what about the second largest digital currency, Ethereum (ETH)?
In the last twelve months, the cryptocurrency market has experienced several ups and downs, mainly driven by Satoshi’s cryptocurrency performance. When it comes ETH price dynamic, the 2019 cycle is expected to finish with minor losses.
Ethereum started the year around the $140 mark, and ends it finding strong resistance at $130 level. Despite the little change between these levels, a lot has happened in between. Supported by Bitcoin’s short-lived rally, ETH peaked at $335 on late June.
Will the same pattern repeat? What events will drive ETH price in 2020? Is it the right time to buy ETH? In this article, we’ve compiled some of the most notorious and respected ETH price predictions for 2020, 2021 & 2025. Let’s jump into it!
Before analyzing the future of ETH, let’s take a moment to clarify some basic concepts. Ethereum is not a cryptocurrency, but a foundation for a new internet. Uhmmm… Too abstract? Sure, we get it. Let’s put this way: Ethereum is a network intended to decentralize the internet.
Today, companies like Google and Amazon store our personal data, passwords and all sorts of information on their servers. Logically, they charge us for that. And we agree to it because… let’s face it: it’s kind of convenient. We know these companies spent billions of dollars a year in specialists and state-of-the-art systems that keep our data secure.
Yet, as the record shows, their security systems aren’t really “unbreakable” and hackers still have managed to break into them multiple times. In other words, internet third parties are vulnerable to attacks that could result in our data being stolen, lost or changed.
While these centralized solutions might seem like a good and convenient choice for many, their nature makes them far from perfect. Brian Behlendorf, Executive Director of Hyperledger and a primary developer of Apache Web Server, has repeatedly expressed that the internet was always meant to be decentralized and that blockchain is uniquely position to make it possible.
Well… Just like Bitcoin decentralizes monetary operations by cutting down the middlemen in the financial world, Ethereum aims to eliminate the need for internet third parties. In other words, Ethereum wants to be a global computer that democratizes the current client-server model.
The vision of Ethereum is that servers and clouds, where today all data is stored, will be replaced by nodes on the Ethereum blockchain maintained by volunteers across the world.
One of the key differentials of the Ethereum blockchain is the possibility to build entire ecosystems and decentralized applications on top of it.
Now, as you could imagine, this decentralized internet and dapps platform still needs to run on something to support its functionality. Instead of charging a maintenance fee in dollars, euros or even Bitcoin, the network needs Ether, abbreviated as ETH.
Ether (ETH) is a cryptocurrency used to pay for the computational resources needed to run operations in the Ethereum ecosystem. Simply said, ETH fuels the Ethereum network and that’s precisely where the term “Ethereum gas” comes from.
Still not sure? Let’s picture Ethereum as a notebook. Now, if you want to edit a note in a certain page, you need to pay for a fee so that the operation is processed. That fee is paid in ETH according to the amount of computational power needed to process it.
Since many decentralized applications run on the Ethereum network, ETH is well-positioned for scalability. The stronger and bigger the network, the more ETH will be needed to run it. So if you’ve been asking yourself “Will Ether die?”, then the answer is: not likely.
True. ETH isn’t an investment tool by definition. However, it’s rapid growth has made it a hugely attractive alternative among cryptocurrency enthusiasts worldwide. Before deciding whether it’s the right time to buy ETH, let’s take a quick look at its advantages and disadvantages:
As previously highlighted, the Ethereum network opens the doors to a kind of internet and applications. For entrepreneurs, that’s a world of opportunities right there. For ETH, that’s no different. With an increasing number of companies and users relying on Ethereum-based solution, the value of ETH is only expected to rise.
From blockchain smart contracts, dApps and decentralized autonomous organizations (DAOs), the Ethereum blockchain is one (if not the) most functional blockchain out there. It also has served as a platform for cryptocurrency fundraising through its ERC-20 standard tokens.
Ethereum’s founder Vitalik Buterin is a potent figure in the cryptocurrency and blockchain world. Not only he receives huge attention from media outlets, his vision is supported by some of the leading developers worldwide. Notable venture capitalists such as Union Square Ventures, AngelList founder Naval Ravikanta and Andreessen Horowitz support Ethereum.
Despite the market volatility, which affects most cryptocurrencies on the market, ETH has proven over the years to be a solid choice for holders.
If there’s something that holds cryptocurrencies back on their development is the lack of regulation. In most cases, this isn’t due to the fact that regulatory entities are giving their backs to digital currencies, but they failed to understand and classify them.
Ethereum’s ETH is one of the few cryptocurrencies that is benefiting from a clear stance. The United States Securities and Exchange Commission (SEC) has already ruled that Ethereum isn’t a security according to the Howey Test.
Sure. Ethereum leading the wave of decentralization. Ironically, ETH remains highly dependant on its creator — Buterin. Back in 2017, fake news suggesting Buterin died in car crash wiped out over $4 billion of Ethereum’s market capitalization.
As Ethereum faces some flaws in its development path, some competitors are already taking the opportunity to increase its share on the market. Among the most relevant Ethereum competitors, we currently find NEO, Cardano, EOS, Stellar and Tron.
It’s time we get to the big question: where is Ethereum’s ETH price headed next? Will ETH price grow in 2020? Or turn downwards instead? As you can imagine, analyzing the future of cryptocurrencies isn’t an easy thing to do. But here’s what the experts are saying…
This blockchain and cryptocurrency enthusiast is a leading figure when it comes to ETH price predictions. He has recently communicated to his nearly 150K+ twitter followers and readers of JoeTechnologist.com that Ethereum’s ETH might hit $1200 by end of 2020.
Another key influencer in the cryptocurrency world is Tom Lee — a Bitcoin bull and co-founder at Fundstrat Global Advisors. In his view, the second’s largest cryptocurrency will cross the $1900 mark in the next twelve months.
This tech savvy public figure estimates that Ethereum’s ETH will approach the $500 during 2020. While such movement will be positive for ETH holders, he believes growth will be driven by investors moving out of Bitcoin in search for more sustainable options. He thinks that BTC could lose up to 50% of its current market share against ETH in the next five years.
This cryptocurrency website focused on price predictions expects ETH to end 2020 above $338. However, the growth cycle is expected to come to an end by 2024. WalletInvestor analysts suggest ETH might fall from $450 to $363 in that year.
One of the most modest ETH price predictions falls on TradingBeats, which estimates Ethereum’s cryptocurrency extended loses until mid-2020, finding support around $126 and then recovering to $135. The site expects ETH to reach $260 by 2022.
In pure contrast, deVere group’s CEO Nigel Green believes Ethereum will hit $2500 by 2020. He fundamented the forecast in three factors: a wider number of trading platforms, higher demand for digital currencies, and an increased popularity of smart contracts.
Ethereum’s evangelist Bobby Ullery has recently expressed a bullish vision on the second biggest coin. Bobby, who assumes the cryptocurrency market capitalization will considerably increase in the next year, sees ETH trading above $11,375 per coin in 2020.
In an interview with CNBC, Ethereum’s co-founder Steven Nerayoff said Ethereum is likely to expand 10 times in 2020, which could lead ETH to $3000 in the following months.
While the 2019 price estimation from this website wasn’t really fulfilled ($484), the 2020 forecast is still to be seen. The site expects Ethereum ETH price to cross the $2480 by 2020 and extend its gains towards 2025 up to $3844 per ETH.
For the cryptocurrency market, the 2020 year will certainly be one not to forget. With the Bitcoin halving event scheduled on June 10, Ethereum and the rest of cryptocurrency are unlikely to see much recovery. Mainly because holders are eyeing the major crypto event and remaining cautions about its possible effects. For the second quarter of 2020, bullish analysts are pointing at a break above the $2000 mark, which could lead to further gains.
The price of ETH in 2021 will largely depend on the 2020 market trajectory. If 2020 marks the beginning of a growth phase, it could extend easily until half of 2021, and later enter a consolidation cycle. By 2021, we could see ETH facing resistance at $3000.
Five years from now, the Ethereum network is expected to be widely used across the world for multiple purposes. For ETH this means one thing: a rising value. If Ethereum continues to integrate and expand the reach of its partnerships, the ETH could surpass $10K by 2025.