Ethereum Price Hits New All Time High – Many Experts expect New ATH
Mar 8, 2021 18:29 UTC
Mar 8, 2021 at 18:36 UTC
If you ask me, there is no better way to start 2021 than profiting from a bullish run of altcoins, especially Ethereum. It has been a rough and tough 2020 for one and all due to the pandemic. But it has led to positive outcomes for the crypto community.
More and more people in India are starting to search for the phrase “Buy Bitcoin with INR”, and “How to Buy Bitcoin in India”. While many of those searches are for BTC, yet the second most valuable and largest cryptocurrency by market cap, Ethereum has registered some significant attention as well.
Ethereum is arguably one of the finest technology ever created. It is gaining momentum, support, and attention from the smartest technopreneurs, investors, and financial experts by the day. The prices of Ethereum have been making the rounds lately due to its surge to a new All-time High.
On the 8th of February 2021, Ethereum hit $1712.84 and a market capitalization of over $196.2 billion. What more, many Crypto analysts still think it could do better. Hence there have been predictions that this price would still be beaten in the next few months of 2021. But, are these predictions based on mere speculations? Or, is the price potential based on wishful thinking?
Anyway, I will let you be the judge. Here are some of the reasons why most experts believe ETH would continue to attain new all-time highs:
The New EIP 1559 For Better UX and Gas fees
One of the underlying problems that has bedecked the Ethereum platform is not knowing how much one would pay for gas for a transaction. This has been a major problem for ETH ecosystem.
According to Eric Conner, an Ethereum developer, the new EIP 1559 is designed to solve the gas problem. Not only that, but it will also help reduce transaction fees as well as providing a base fee structure on the Ethereum blockchain. The Ethereum BASE FEE mechanism will eliminate the need for users to generate their gas and would provide a base fee instead. The mechanism will also burn Ether in the transaction fee.
To the average crypto guy, this might not sound interesting, but it somewhat adds to the user experience improvement of the ecosystem which is a plus and much relief from the very high gas fee. People in developing countries like India who want to exchange Bitcoin to INR will find their trade more profitable. It is a no-brainer, right? Low fee = More Profitable Transactions. As such, it is advisable that you Buy bitcoin in India from a reliable platform like Remitano.
The Chicago Mercantile Exchange Announcement
This is another big factor that could be the reason for the recent surge in the price of Ethereum. CME announced their decision to launch Ethereum Future on their platform on the 8th of February 2021.
Many crypto analysts believe that the listings of Ethereum on major exchanges like CME could further push the uptrend upward. Listing of Ethereum futures will provide more liquidity and traders will have the means to hedge spot positions. This is one of the best times to buy ETH.
JP Morgan analysts have this to say to their client, “The listing of Ethereum futures on a regulated exchange should serve to enhance the crypto market structure by allowing investors to gain exposure to the second most important cryptocurrency as a diversifier to bitcoin, or for simply hedging existing Ethereum exposures.”
Put in another way: Listing on regulated exchange = More exposure to investors.
This is also the same view shared by the crypto analyst at eToro, Simon Peters. Peter thinks this move will open new entries and will trigger more buying of ether.
Global Adoption of DeFi
There are presently more than a million Defi users across the globe. This could also be the reason for the boost in Ethereum price. And with the continuous adoption of DeFi, then the sky is the starting point for Ethereum. The adoption of DeFi as a solution has also led to an increase in the demand for Ether. This adoption has thus stamped the position of Ethereum as the most useful network globally.
At the moment Ethereum is undergoing a major upgrade. Ethereum Platform currently operates on Proof of Work (PoW) which implies that miners would have to compete to add blocks to the Ethereum blockchain. While with the next phase Proof of Stake (PoS) which seeks to eliminate the concept of competition on the Ethereum blockchain. What this also means is the platform will experience enhanced speed and scalability.
With the Ethereum 2.0 phase there are over 2.5 million Ethereum deposited into the Ethereum staking contract and this figure is not slowing down. It is important to understand that for every 32 ETH deposited into ETH 2.0 means the Ethereum market has 32 ETH less.
Layer 2 Scaling Solution
Simply put, unlike Layer 1 the set of Ethereum technology from the first principle of Layer 1 offers lower fee and faster transaction confirmation. What this means is that DeFi applications like Synthetix, Plasma, and Optimistic can drastically reduce their fee. Layer 2 is also said to be able to handle 50X to 1000X throughput more than Layer 1.
Over time, Ethereum has been seen to mimic Bitcoin. Investors of Bitcoin have also turned their attention to Ethereum which is positioned to lead the altcoins due to the positive correlations between them. More so, Greyscale crypto fund firm is reported to have reopened its Ethereum Trust. It is said they now have close to 100,000 ETH that is over 5 billion USD.
With the issuance of stablecoins ($16 billion has been issued so far on ETH), and the daily active address of Ethereum is on the increase. Plus, with over $80 billion in gas transaction fees then there is high hope that ETH prices will surpass $2000 in the coming months.
In the end, we feel that ETH’s strong technical points, the implementation of New EIP 1559, the launching on CME, etc, and the strong increase in demand could be a strong drive and determinant for Ethereum breaking new highs above $2000 in the coming months. It is therefore important to buy NOW from a reliable platform like Remitano.
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Published at Mon, 08 Mar 2021 18:29:59 +0000