Ethereum is a decentralized smart contract platform that allows developers to build decentralized applications (dapps) that run on the platform. It is the largest blockchain to date by far, and its native ETH token is the second largest currency in market capitalization of the crypto sphere, behind Bitcoin. Will Bitcoin be surpassed by Etherum, what’s Ethereum Price Prediction 2021?
Bitcoin and Ethereum are two totally different projects. Bitcoin is only used to make payments. Ethereum developed an EVM, Ethereum Virtual Machine that consists of a gigantic Turing complete computer, distributed throughout the planet among thousands of nodes, which allows doing anything, such as, for example, manage insurance, real estate, games, logistics, commercial networks, basically, everything that an individual computer allows to do, in a decentralized way, without intermediaries that can steal your data or censor you.
Bitcoin is a Postnet, it can only make payments. Ethereum is a Smartphone, it can run any application. Bitcoin is a cryptocurrency, Ethereum is a token.
As of this writing, on Feb 12, 2021, the Ethereum current price is $ 1,737.88. A year ago, the ETH price was around $ 200. During the bull run of early 2021, the Ethereum coin price soared wildly.
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What is Ethereum (ETH)
Ethereum is an idea by Vitalik Buterin dating back to 2013. In his whitepaper he presents a totally novel concept for blockchain technology, describing Ethereum as a globally distributed computer for running programs and storing data. Vitalik continues to lead the project to this day. Gavin Wood, another of Ethereum’s more well-known founders, wrote the Ethereum yellow paper but left the project in 2016 to start working on another blockchain project called Polkadot.
At the Ethereum launch, which took place in 2014, the team proposed a public sale of the native token “Ether” (ETH), and they raised more than $ 18 million, making it the largest token sale to date. A year later, the Ethereum mainnet finally saw the light. Today in 2021, Ethereum is still in deep development, being the subject of great technological developments.
Ether (ETH) is the native currency of the Ethereum network and has many uses cases: it serves as gas for network transactions, it is a digital store of value, it can be traded and exchanged on all Cex and Dex exchanges, and it can be used as payment currency. Many analysts say that ETH is the only cryptocurrency that acts simultaneously as a store asset, as a commodity, and as a capital asset.
ETH is an inflationary currency. Unlike Bitcoin which has a maximum emission of 21 million, the emission of ETH has no limit. As long as the PoW consensus protocol lasts (until ETH 2.0 is fully implemented and goes to PoS), miners receive new issued ETH each time a block is processed, verified, and added to the Ethereum blockchain. The production process of a new block takes approximately 13 seconds, and the block reward is currently 2 ETH per block.
It is expected that as time goes by, the inflation rate of ETH will decrease, and when Ethereum 2.0 consolidates alongside Proof of Stake (PoS), ETH is not going to be mined with computational power anymore. Instead of the miners, there will be “validators” who must deposit their ETH tokens, and the PoS protocol will determine which participants are selected to validate blocks and earn staking rewards. Ethereum 2.0 will require validators to run a validator node and stake a minimum of 32 ETH to participate in the network. The rate of return for staking in ETH is expected to be around 4% to 10%.
1 ETH can be divided into smaller units called Gwei.
1 Gwei = 0.000000001 ETH
The Gwei unit is the most used to calculate the price of gas in transactions on the Ethereum network.
Ethereum Price Chart
The Ethereum price USD has come a long way. In March 2016, after its launch, the Ethereum coin price was around $ 11. In March 2017, the price almost doubled, reaching $ 20. In March 2018, after the ICO fever (which could take place thanks to Ethereum creating the platform), the Ethereum coin price reached almost $ 700. Then, like all currencies, it suffered a sharp drop, and in March 2019 it reached $ 135. ETH value stayed at that price for a year, trading in March 2020 at around $ 200. Today, in February 2021, the ETH price is $ 1800 and the truth is that the predictions indicate a sustained increase, as we explain below.
In the following chart, you can see the evolution of the ETC price in the last year.
Market prediction for Ethereum (ETH)
There are good reasons to believe that Ether will continue to climb in price in 2021.
Ethereum is the number one platform for developing blockchain projects and launching decentralized applications. Each transaction generates network commissions paid in ETH. And as network growth rates remain high, we can confidently expect the continuation of ETH’s “bullish” trend. Interest in ETH is increasing, as is the number of active wallets, the number of transactions on the network, and the average transaction size. Corporations are starting to look at ETH as they already did with BTC.
Ryan Berckmans. With current average transaction prices hovering around $ 25, Ethereum is virtually unusable for the average operator or DeFi user. The current level of gas rates should reflect an asset price of USD $ 2,500. There are plans to alleviate these very high fees with an early Ethereum upgrade proposal called EIP-1559. Once this happens, according, some of the fees will begin to accrue for ETH holders through a burning mechanism that could push its price up to $ 20,000.
Andrew Keys is quite optimistic in his predictions for 2021, stating that next year will see cryptocurrencies take a more important position on the global political and economic scene. Investors start to accept Bitcoin as the new ‘digital gold’, and Ethereum as the ‘digital oil’, thanks to the growing importance of smart contracts created on the ETH Blockchain. Keys expects Ethereum to be able to achieve a price of $ 2,000 in 2021. Essentially due to the same causes that would drive the price of Bitcoin, that is, the entry of institutional investors attracted by the advantages that Ethereum 2.0 offers for the creation of Blockchain projects on the ETH chain.
Tyler Winklevoss. Many companies are built on the cloud, for example paying Amazon with fiat. On the Ethereum network, dapps pay with ETH. If we consider Bitcoin as gold, we have to consider Ethereum as oil. If Ethrerum succeeds as a decentralized layer of apps across the globe, it may have the same market capitalization as gold which is 9 trillion. With Ethererum currently holding 80 billion market capitalization, that would mean Ethereum could hit $ 75,000 per coin.
Lark Davis. With the upgrade proposal, by burning fees, a bullish force is created in the price of ETH, which can cause the coin to reach more than $ 3,000 at the end of February-March 2021. “I am very bullish. Layer 2 solutions are attracting corporations, who are starting to think about buying not just BTC but also ETH. “
Raoul Pal. ETH might well go to $20,000 this cycle, exact as BTC last cycle, by market cap ETH will be bigger.
Ethereum (ETH) price prediction 2021
Many analysts predict that a parabolic trajectory rally for ETH may be imminent, due to the growing fundamentals of the Ethereum DeFi network and ecosystem. The total value locked on DeFi platforms since the beginning of 2020 has grown by almost 3,300%, from $ 687 million to $ 23.2 billion. And Ethereum is the mainnet for the creation and launch of most new DeFi projects and stablecoins.
In December 2020, phase 0 of Ethereum 2.0 began. Phases 1 and 2 will launch in 2021 and 2022. Ethereum 2.0 is the most important upgrade Ethereum has had so far, introducing two major improvements: Proof of Stake (PoS) and Shard Chains. PoS will not use miners, but the network will be validated by “validators” (virtual miners) who deposit ETH as a stake. PoS is expected to improve security, scalability, and power efficiency. With Shard Chains, the Ethereum blockchain will be separated into several separate chains that will work in parallel and connect to each other seamlessly, dividing the responsibility for data processing among many nodes. This parallel processing (instead of the consecutive one of the previous PoW), will strongly increase the throughput of the chain.
The main use case of Ethereum today is to grant gas to the operations carried out by the applications of the DeFi ecosystem.
DeFi (decentralized finance) is probably the most famous ecosystem in the crypto-sphere. It is composed of protocols, digital assets, smart contracts, liquidity pools, decentralized exchanges (DEX), currency swap platforms, and thousands of decentralized applications (dapps) that carry out financial operations in a decentralized blockchain environment, such as blockchain-based borrowing and lending, automated token exchanges, decentralized prediction markets, synthetic assets, no-loss lottery’s, staking, yield farming, peer-to-peer payment systems, stablecoins and various other strategies that shape an ecosystem of new finance and new classes of assets. DeFi is not a replica of traditional finance in a blockchain environment, but a totally new and accessible new class of finance, without permission, without censorship and without intermediaries.
The vast majority of DeFi dapps run on the Ethereum network. This speaks clearly of the future value of ETH, as the TLV (Total Locked Value) in DeFi grows exponentially day by day. By leveraging the Ethereum blockchain, DeFi dapps are freeing up new liquidity pools and creating new non-existent and unknown business opportunities, while increasing security and transparency and the entry of new players, previously excluded by traditional systems of minimums and restrictions unattainable by the common man.
CME Group, one of the largest derivatives exchanges, will launch its ETH derivatives product in February 2021, which is expected to attract a significant flow of institutional money. ETH looks very bullish and has the potential to outperform BTC in 2021. ETH price is forecasted between $ 1600 and $ 1800 at the end of Q1 2021. Notably, ETH price parabolic projections of around $ 10,000 are available in many prediction reports of prices.
Ethereum (ETH) price prediction 2025
Ethereum is following alongside an early Bitcoin fractal, showing similar investor behavior and price patterns. Bitcoin tripled bottomed, while Ethereum has formed a double bottom. A similar trajectory as Bitcoin’s would take the price per Ethereum to as high as $ 70,000 per coin at the peak of the next bull market.
b) The development of ETH 2.0 will boost the growth of the ETH price
c) Ethereum will gain more attention from institutional investors
Ethereum remains 50% off its 2017 ATH. The growing interest and growing demand for Ethereum will definitely push the value towards its ATH at some point in time, and 2021 may be that time.
You can manage the purchase, exchange, and storage of ETH in your Atomic Wallet as shown below.
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Disclaimer. None of the things discussed here constitute financial advice and are mentioned for informational purposes only. They are in no way intended to replace the necessary personal research prior to any investment.