In the crypto world, Bitcoin stands out as the most popular asset, but Ethereum is also worthy of attention, as it has a lot to offer, given its potential beyond the digital tokens’ realm. Ethereum is widely known outside the crypto community for its innovative blockchain solutions and fantastic features, and it functions as an open source blockchain that enables the creation of smart contracts, mainly applied in the DeFi landscape. Furthermore, it is continuously updated and maintained by validators who acquire ETH as a reward for their efforts and contributions.
Ethereum creates utility and value in many industries, such as entertainment, real estate, and healthcare, and when it comes to its price, experts expect the asset to reach as much as $40,000 by 2030- an ambitious target, which is definitely not implausible. Factors like its unique model, scalability features, and comprehensive market strategy have all contributed to ETH’s top position in the crypto market, and it wouldn’t be surprising to see this asset reaching new heights in the future.
How does Ethereum operate?
The Ethereum network started operating with a consensus mechanism based on PoW; however, in 2022, it transitioned to PoS, a model that provides extra security, uses less energy, and is much more efficient than the previous model when it comes to scaling solutions. In the PoS consensus mechanism, validators can stake capital in ETH and use the staked ETH as collateral when joining the network. Once activated, validators acquire new blocks from their peers and must send them out to other network nodes.
Moreover, validator nodes vote on the validity of new blocks of transactions, ensuring they are authentic before permanently including them on the main blockchain. Then, they select one node as the block proposer for the actual time slot, which is responsible for developing the new transactions block.
A PoS model is better than PoW in the sense that it doesn’t require heavy computational power – instead, the node validates the transactions while the value is staked as collateral, and in order not to lose the collateral, the nodes must run competently.
Ethereum price forecasts for 2024 and beyond
As mentioned, Ethereum is more than a transactional currency – many consider it to establish itself as a store of value for those seeking to maximize their wealth. Ethereum functions genuinely well with NFTs, DApps, DeFi, and smart contracts, and this list only grows yearly. As the network continues to become stronger and the ETH team develops innovative features, investors will likely keep growing in the following years. At the time of writing, Ethereum’s price is $3,097.77 USD. however, this wasn’t the case for the Dencun upgrade, which didn’t really impact the value of cryptocurrency much. But Ethereum is well-positioned for a bullish trend, supported by a positive macroeconomic backdrop and increased activity on the Ethereum network. Ethereum layer-2 activity experienced an all-time high on August 7, recording 318 transactions per second. This highlights the potential of Ethereum’s scaling solutions, which can process 24 times more transactions compared to the base chain. In other words, recent upgrades have successfully decreased rollup operational costs.
According to market analysts, by the end of 2024, Ethereum could reach the $5,000 mark and reach the maximum level of $6,500 in the following year. By 2020, the asset is expected to reach a maximum of $20,500, which is an ambitious target. The narrative of Ethereum for next year will likely be dominated by the Bitcoin Halving event in 2024 and its effects. The Halving events generally result in new ATHs not only for Bitcoin but for altcoins in the next 12-18 months after the events have occurred, meaning investors will see these gains somewhere in 2025. Furthermore, interest rate cuts could happen in late 2024, continuing into 2025 as well. This event could have positive effects that will be seen in the following year. Suppose Ethereum remains at the top over the years; by 2030, there’s a chance for it to decouple from the price of Bitcoin, meaning that if there’s a fallout from the BTC halving event, it wouldn’t really impact the price of ETH. In other words, the price of this asset could see greater stability. Furthermore, 2030 could likely mark another milestone in Ethereum’s journey: the Splurge upgrade, with developers fine-tuning the Ethereum protocol. Furthermore, new ideas could likely be developed at this point, representing a game-changer for the industry, as it could take blockchain technology and digital assets to new heights.
Is it possible for Ethereum to surpass Bitcoin?
Due to the volatile nature of cryptocurrencies, there are different possible scenarios – including Ethereum outperforming Bitcoin. In 2021, Ethereum showed its tremendous potential, outperforming Bitcoin and gaining almost 400% compared to Bitcoin’s 66%. Experts are confident in the long-term potential of Ethereum, stating that the asset has a stable future, given its use cases and unique blockchain. And there’s a good chance it could see an exceptional performance compared to Bitcoin, but that doesn’t mean it will surpass the price of the crypto leader. Regardless of it, Ethereum can reach a market cap that’s just as notable as Bitcoin’s, and it’s worth keeping an eye on this asset – and adding it to your investment portfolio.
Takeaway
Different crypto experts have looked at Ethereum’s performance over the years, from its humble beginnings until now. Knowing its capabilities, they feel confident that Ethereum won’t go anywhere in the future because it has firm fundamentals and massive potential for growth. Its continuous upgrades have led many analysts to predict that this year – and the upcoming ones – will see the token flourishing due to the increased confidence in blockchain solutions and cryptocurrencies. Hence, investors who’ve been holding ETH for a long time could see impressive gains, while those who’ve been hesitant to dive into the crypto world will finally feel ready to navigate this market with enthusiasm and confidence, knowing they could reap great rewards as long as they stay vigilant and mitigate risk effectively.
