Following the general description of cryptocurrency, Ethereum is one of the most demanded and purchased cryptocurrencies worldwide. Since its official release in 2015 by Buterin Vitalik and Gavin Wood it has been considered one of Bitcoin’s major competitors.
Although it is at a very large distance from its forex counterpart, its market success is unquestionable. According to Ámbito reports, this year 2021 it has broken its own records by reaching a value close to $4860 each Ethereum and, most likely, it will come to be quoted at a much higher value.
But what is the fate of this cryptocurrency, will investors want to buy Ethereum cryptocurrencies, will it succeed in the future and reach a higher value or will it be overshadowed by Bitcoin? We will shortly discuss some current issues and what are some predictions.
State of Ethereum in 2022
Bullish competitions this year have offered some interesting data. Bitcoin, the digital currency that promised to break its own estimates, had a relatively homogeneous value without major changes.
It still has a long way to go compared to its equivalent Bitcoin, which is trading at an estimated $54 thousand. However, its trends tend to be bullish.
As is normal in this industry, cryptocurrency prices rise and fall according to the law of supply and demand. For these purposes, both Bitcoin and Ethereum have been affected by these rules. As reported by Infobae, it shows that in recent months the value of these two currencies fell up to 38%. However, they have managed to recover.
Ethereum in 2022 managed to consolidate itself as a reference currency in many platforms. Among them we mention the case of Changelly.com, which allows convert eth to xlm in a fast and automated way.
More platforms are joining the cryptocurrency exchange, where Ethereum has a wide audience of interested investors. Whether we are in Spain, the United States or El Salvador, this currency has achieved a large number of purchases and is expected to continue to increase.
Some predictions about Ethereum in the financial sphere.
Following studies by Forbes, the digital magazine for finance, business and entrepreneurs, Ethereum is presumed to peak at $5000 in less than a decade. 2022 marked a good benchmark for that currency, where it managed to surpass and sustain its value by 30% compared to other years.
Jeff Benson published an article on June 25, 2021 where he studies what is going to be the fate of Ethereum for the years to come. He takes into consideration the Proof of Stake principle as a determining factor that will change the way this cryptocurrency is obtained.
He states that from 2023 the way it is mined will change and this will alter its access. It changed its mining protocol from Proof of Work to the acclaimed Proof of Stake. It is a method that requires less energy drainage and is managed through tokens. According to Benson, this will make it more secure to use and, as a consequence, more attractive, allowing a growth in its sales.
This change will be called Ethereum 2.0. Among other advances offered by this project, it includes a liquidity fund signed by Buterin that will generate more investment. This managed to reserve at least 1.7 million ETH coins.
These changes, it is estimated, will achieve a certain degree of scalability and resilience of the cryptocurrency to any changes in the economy. Therefore, this option will become much more tempting in the coming years.
It is undeniable that Ethereum still has a long way to go to be able to compete against Bitcoin, which significantly outperforms ETH in value. However, the measures that are being taken in energy consumption, the way mining is done, cryptocurrency storage and means of accessing this currency promise a progressive growth.
Ethereum’s historical values are on the rise. Despite being such a young cryptocurrency, with less than a decade of life, it has shown a great place in the market. More investors decide to invest in this currency thanks to its lower volatility and security. As a result, it is believed to be one of the currencies of the future.