Ethereum is the second largest coin after Bitcoin in the cryptocurrency community. He has been very consistent in recent months. 2021 was one of the most important years for Ethereum's growth, as the token surged from a price below $1,000 to an all-time high of $4,000 in the first quarter of the year. This growth, however, was not unique to the Ethereum network, as other altcoins (mostly) and Bitcoin also took advantage of this pump in their unique capabilities. The development of Ethereum is one that was rather shocking to most investors as its move was seemingly unprepared. Although several analysts and crypto enthusiasts predicted that 2021 would be the season for altcoins, Ethereum was in this category, hence the massive pump.
According to analyst forecasts, the price of Ethereum is expected to increase by 400% to around $20,000 by 2025. Major upgrades on the network will also be a major factor in pushing the price up. Ethereum trades on all trading platforms. With just one button, you can buy Ethereum on all major trading platforms without stress.
There have been several debates and analyzes regarding the future price of Ethereum and whether it would eclipse Bitcoin. However, these questions are not easy to answer since the predictions are based on speculation. What is important is to highlight the significant differences between Ethereum and Bitcoin and the advancements of the Ethereum network compared to Bitcoin.
Experts have predicted that Ethereum will be the most traded cryptocurrency by the end of 2022. Upgrades on the Ethereum network started last year with Ethereum 2.0 to upgrade the transaction rate and gas fees on transactions on the Ethereum network. However, some panelists also speculated that the price of Ethereum could also skyrocket to $100,000 in the coming years with the way Ethereum upgrades are discussed.
Additionally, another determinant of Ethereum price is the user-friendliness of the Ethereum network. Most DeFi tokens are built on the Ethereum network. Some of these tokens have important foundational use cases that enable their adoption. Most investors are now turning to altcoins, which are either NFT tokens (non-fungible tokens) or DeFi tokens (decentralized finance), as a way to reverse Bitcoin's dominance. Since these DeFi tokens are still very affordable, more interest is pointing in this direction. All purchases, sales, and trades are all done on the Ethereum network. Therefore, as the network becomes more widely used, more investors will buy Ethereum the same way investors buy native exchange tokens.
One of the frequently asked questions regarding Ethereum and Bitcoin is if Ethereum will overtake Bitcoin soon. Bitcoin has been around since 2008 and Ethereum since 2014. However, Ethereum with its current momentum is confident of catching up with Bitcoin. However, Bitcoin's dominance and total supply are some of its main strengths above the market. While Bitcoin has around 18 million in circulation, Ethereum has around 117 million, which says a lot about dominance. Bitcoin holds the largest percentage of all cryptocurrency supply, around 46%, up from 85% in 2017.
Be sure to note that if Bitcoin's dominance continues to wane and altcoins and NFTs have the opportunity to surge, this could be Ethereum's only upside and time to outperform Bitcoin. But bitcoin doesn't seem to be done with the crypto community just yet, based on charts and analysis. It will take more than funds to break his dominance.
With Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS), network fees, security, and scalability aim to improve significantly. This is also an important distinguishing factor between Bitcoin and Ethereum since Bitcoin uses PoW for block mining and verification. The Eth 2.0 upgrade also aims to overhaul Ethereum's core consensus, shifting from energy-intensive PoW to scalable PoS.
As mentioned above, Ethereum is an essential player in both DeFi and NFTs and has its network large enough to provide a fast transaction rate and the ability to run smart contract applications without having any technical issues. The Ethereum network is such that it benefits from an upgrade. Until then, still undergoing major upgrades, it won't be long now before it soars and sets a new all-time high.
