Home Ethereum Experts predict how high Ethereum’s price could rise in 2022, a ‘decisive year’

Experts predict how high Ethereum’s price could rise in 2022, a ‘decisive year’

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Experts predict how high Ethereum’s price could rise in 2022, a ‘decisive year’

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Ethereum is the best known altcoin, and it is much more than just a cryptocurrency for many investors and enthusiasts. And experts say its value could increase by 400% in 2022.

Native token of Ethereum, ether (ETH), has grown tremendously in value since its inception. Launched in 2015 by a computer programmer Vitalik Buterinether has risen in price from $0.311 when it launched in 2015 to around $4,800 at its high late last year – with plenty of volatility along the way.

Ether was trading above 1,800 on Friday, representing a lifetime return on investment (ROI) of over 700,000% at the time of writing. A differentiating feature for Ethereum – unlike bitcoins and other cryptocurrencies – is its usefulness as a software network that allows developers to create and power new tools, applications and NFTs.

The blockchain-based software network has many uses and applications in the tech world, especially for games, music, entertainment, and decentralized finance (DeFi), making it one of the most popular cryptos. popular and most used last year.

At an annualized rate, the ROI of ether is nearly 300%. This means that early investors have almost quadrupled their investment every year since the summer of 2014. Crypto prices are notoriously volatile, however, financial experts say to only invest what you can afford to lose, and never at the expense of fundamental goals such as emergency savings and paying off high-interest debt.

A week ago (August 6) A month ago (July 14) 3 months ago (May 15)
$1,725.38 $1,112.92 $2,064.23

Updated prices: August 13, 2022

So how far do experts expect the price of Ether to climb? Here’s a look at the factors contributing to Ethereum’s volatile, yet rising price projections, and what experts are predicting for this year.

Ethereum Price Predictions

We asked three experts how high they see Ethereum going this year, and each qualified their predictions by saying it’s nearly impossible to predict Ethereum’s future price. And other the experts said ETH price will be even more volatile than bitcoins in the coming months, primarily because Ethereum is transitioning its technology to a less energy-intensive version that insiders colloquially refer to as “Ethereum 2.0”. Ethereum’s upgrades could make it more attractive and durable for widespread use, but until that happens, experts are waiting to see how investors and companies building their technology on the platform ‘Ethereum react to changes.

Considering these factors, here are some predictions on what it takes wait with ethereum price This year:

Pro tip

Financial planners suggest investing only 1% to 5% of your overall portfolio in crypto. Despite its growing popularity, the crypto market is extremely volatile and prices can fluctuate rapidly overnight.

$4,000-$5,000

Despite the challenge of predicting the price of a volatile cryptocurrency, the experts we spoke with generally agree that ETH could break $4,000 again in 2022. And a recent ethereum prediction by Bloomberg intelligence analyst Mike McGlone, it ends the year between $4,000 and $4,500.

But how far could it go from there? This will depend on several factors (more on that below) that could contribute to its long-term value.

$6,500 to $8,000

The Coinpedia crypto news briefing predicted ETH could end 2022 between $6,500 and $7,500 should the same bullish run that started in the middle of 2021 continue. However, 2022 brought a bearish downturn in the crypto market, making it clear that the price of Ethereum will not rise solely on sentiment. The blockchain now has considerable competition from similar platforms filling its gaps as the Ethereum team works to transition to its second generation updates.

“Ethereum was the only show in town,” said Henri Arslanian, global crypto leader at professional services firm PwC in a January 12 episode of CoinDesk’s first engine. But for the price of Ether to continue to rise, investors will need to see improved demand and functionality.

“I believe Ethereum can go up to $8,000”, Ian Balinainvestor and founder of a crypto research and media company Token Metrics, said NextAdvisor. “Ethereum is the clear leader, but other blockchains are onboarding new users at a faster rate due to Ethereum’s high gas fees and low transaction speed.”

$12,000+

Coinpedia predicts an even higher price of $12,962.33 in 2022 if Ethereum’s upcoming transition to Ethereum 2.0 is successful. The new upgrades could potentially make Ethereum more affordable for users to create and develop products, as currently the service fees to use Ethereum are notoriously high.

What influences the price of Ethereum

Ethereum earned its reputation as the first blockchain to use smart contracts, which are basically instructions encoded on the blockchain that execute financial transactions through algorithms.

Now, new Ethereum alternatives with similar capabilities are hitting the market and changing the demand for ETH in both favorable and unfavorable ways. Here are some variables that impact the price of Ethereum.

High traffic and usage

Smart contracts allowed artists and creators to mint (make) and sell the digital artwork now known as non-fungible tokens (NFT). This was both a blessing and a curse for Ethereum, as the blockchain’s popularity has led to what some are calling a blockchain ‘bottleneck’. Think mall parking on Black Friday – digitally only.

Now, with so many users, it has become increasingly expensive to transact on Ethereum. The Ethereum team in response developed new upgrades to their infrastructure, but it took a few years to develop the technology.

In the meantime, a number of new companies have created complementary solutions (called “Layer 2s”) that work on the existing Ethereum blockchain. Additionally, entirely new blockchain networks (known as “Layer 1”) have also been launched and marketed as potential alternatives to Ethereum, taking traffic away from the Ethereum blockchain and adding new competition – which may at both increase or hinder the popularity of any product in the market.

For investors, more people using the Ethereum network means more support for the value of your investment, so competitors driving users away could hinder Ethereum’s value over time.

First-mover advantage

Despite the new competition, experts often suggest that Ethereum’s “first-mover advantage” has positioned it for long-term success, even as newer, more environmentally friendly technologies have been developed. However, since cryptocurrencies only have value through community buy-in, user engagement is more important than being first.

Luckily, Ethereum has both: “I think the first-mover advantage is real,” says John Zannospartner of inflection CV, an early-stage venture capital firm that invests in open economy and blockchain companies. “But what’s most important to me is the health and size of the community, and the number of developers entering that community, because that’s what’s going to drive innovation.”

New blockchains like Solana and gimbal also provide similar functionality to Ethereum and have their own native cryptocurrencies. Still, experts say Ethereum is well positioned to grow with its users and meet changing demand in the future.

“Ethereum could rapidly increase its capacity if it wanted to,” says Raza Khan, fintech industry investor and founder of the blockchain platform, Be. And for now, it looks like the Ethereum community is fine with waiting to see if that’s the case.

Competition of ‘Ethereum-Killers’

If “cryptocurrency” and “NFT” were to become household terms in 2021, “Web3” could make a run for them in 2022. Web3 refers to an open access version of the internet based on blockchain technology, where financial transactions are more transparent, individuals have more ownership over their data, and thanks to cryptocurrency, users own most of the infrastructure.

Companies like Ethereum and similar blockchains like Solana, Cardano, and Tezos are working to develop the infrastructure upon which the future vision of Web3 can be built. Investors see these new developments as similar to the dot com boom when Google, Facebook and Apple first became public knowledge.

“2022 will be the battle of Web 3 and the next evolution of the Internet,” says Balina.

The future of Ethereum

Despite competition from Ethereum and other factors contributing to its continued volatility, there is a general sense of optimism that the original smart contract blockchain will make it through this era of testing.

“Ethereum owns over 90% of the NFT market,” Arslanian said. “This is going to be a very important year for Ethereum, kind of a breakthrough year.”

There are good reasons to expect a quick rebound from the current Ethereum crisis, Zannos told NextAdvisor. “What I think ethereum has is this community momentum that allows a group of very smart people to create innovation and see new opportunities,” Zannos says. “At bottom, my optimism has to do with the versatility of what you can do with Ethereum.”

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