What Is The Future of Ethereum? [2023 & 2025 Analyzed]

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Ethereum is the second most famous cryptocurrency after Bitcoin. In the months ahead of the highly anticipated Ethereum 2.0 standard, many people wonder what is the future of Ethereum. And how exactly does the value of its native coin Ether (ETH) will perform. 

So far, there are valid reasons to believe that the prospect of Ethereum in the upcoming years will be mostly positive. But it depends on the dominance of ETH in the market capitalization, popularity, and network value settlement, having even to transcend Bitcoin in the latter.

The ETH price is predicted to retain its upward trajectory based on past performance and the growing adoption of the Ethereum blockchain. Since the Ether is second only to Bitcoin with a $20 billion capital and $12 billion daily trading volume. Many expect an ETH breakout driven by Ethereum’s status as the first and only general-purpose blockchain.

What Is Ethereum?

Launched in 2015, Ethereum is an open-source digital asset run on a decentralized platform. It is one of the cryptocurrencies available today that enables the revolutionary functionality of smart contracts and Decentralized Applications (ĐApps). These allow any application, process, transaction, or mechanism to run without any downtime. That includes eradication of fraud, control, or interference from a third party on the Ethereum blockchain.

Ethereum has its native programming language, which allows developers to build and publish distributed applications. The potential applications of Ethereum are virtually limitless. Ether is Ethereum cryptocurrency – second in value to Bitcoin, but different in its structure as it supports the deployment of code of any algorithmic complexity. This was a revolutionary step in the advancement of distributed ledger technology. As it established Ethereum as the first general-purpose blockchain platform of this kind.

The Retrospective: ETH Growth and Projections

Many components drive Ether’s price and contributed to its stable growth since the inception of the Ethereum blockchain. Ethereum was created to be far more versatile than Bitcoin’s blockchain. It allows for smart contracts, powerful tokenization, complex decentralized applications, and decentralized fundraising campaigns.

The explosion of Initial Coin Offerings (ICOs) in 2017 saw Ether used as the primary funding mechanism for the crowdfunding projects. As most projects used the Ethereum ERC-20 standard for their tokens, speculation for their tokens grew, and so did Ether’s price.  While many still are uncertain about the future of Ethereum, here are the ETH’s projections over the years.

Ethereum's value progressions.

ETH All-time High

In 2018, the market saw Ether reach its all-time high of $1,412 on January 10. It wasn’t until 2020 that the cryptocurrency goes on bulls again to $545 as of Nov 22, 2020, and reaching almost its all-time high on Jan 12. at $1,281.

When looking at growth charts, the pattern of Ethereum as a cryptocurrency is more impressive even than Bitcoin’s. At the same time, the tendency tends to remain.

ETH Collapses

In 2019, after a significant Bitcoin breakdown, the price of ETH followed suit, bringing the price for the coin down to the $132 level. This marked a 30% drop in value for the cryptocurrency as the coin’s market cap value stood at the $13.98 billion levels.

Despite the sudden price drop, ETH managed to find some form of support. In fact, it shows bulls prospect after the collapse and soaring again when the altcoin season is in.

What Is Revolving Around ETH in 2020?

The year 2019 is indeed pivotal for Ethereum in terms of development achievements. As well as the growing popularity of its market-reigning decentralized applications, or ĐApps.

Although there were no significant changes in Ether’s (ETH) price, the cryptocurrency could start recovering from the deep and repeated selloffs throughout 2018.

Fast-forward to 2020, and Ethereum has reclaimed its status as the world’s ‘best-positioned — smart contracts platform to date.’ A slew of contributing factors includes the global COVID-19 pandemic and subsequent economic recession. Whilst DeFi (Decentralized Finance) gives rise to the decentralized autonomous organizations, or DAOs, that drive the prices of ETH. For all of the reasons, ETH possesses plenty of upsides, potentially in the near, mid, and long-term.

Then there is the highly-anticipated rollout of the Ethereum 2.0, set to take place by the end of 2020. The first phase of the planned upgrade will enact Ethereum’s shift to Proof-of-Stake (PoS) consensus, which will allow Ether holders to stake ETH. By securing ETH in the blockchain in exchange for block reward payments, ETH stakers can benefit through the annual yield. In the end, it’ll also improve the ETH’s economic bandwidth.

What Is The Ether Price Like Now?

Ethereum started 2020 at $130 per coin but continued to surge as the general cryptocurrency market gained an upside momentum. Its first significant price hike came towards February after it spiked to $279 per coin. Once it broke the resistance level, ETH was able to trade above the $500 mark. That’s after Vitalik Buterin gives assurance to the cryptocurrency community through the scheduled launch of Phase 0 of Ethereum 2.0. As of Nov 2020, ETH is trading around $590. Now (Jan 12, 2021), 1 ETH is trading at $1,055.

Part of the dramatic boost in Ether’s value was due to the rising interest in the cryptocurrency space and Bitcoin’s mega rally.  

The Impact of DeFi on ETH Price

In less than a year and a half, DeFi has grown by almost 300% in terms of dollars locked up as crypto collateral. Ethereum, which is the backbone of this new financial ecosystem, currently has 2.5 million ETH locked up, which represents 2.25% of the entire supply.

As the world experienced considerable economic turmoil in 2020 due to the global coronavirus pandemic, decentralized finance markets have largely weathered the economic storm. This could mean that this new financial landscape could significantly impact Ethereum than the ICO did in 2017.

As DeFi reached a few critical milestones in May 2020, the number of new DeFi assets topped 1,000. The upshot? Its user base hit an all-time high of nearly 200,000 in the first month. DeFi has now taken the shape of a complete financial ecosystem, and the economic bandwidth is scaling with over $7 billion in stablecoins. Half of that value is locked away in ERC-20 tokens built on Ethereum.

With the correlation between DeFi and Ethereum remaining high as ETH 2.0’s launch draws closer. It is expected that locking in DeFi may give it a much-needed boost to the cryptocurrency.

ETH Price Analysis

As of November 2020 – Ether’s price has been trading in a positive zone above $450 against the US Dollar. Projections for ETH/USD are that the crypto’s value could accelerate higher once again. But as long as it doesn’t fall below the resistance line of $440.

Although there has been some volatility in the price movement, Ethereum has been in a generally bullish upward trend since the start of 2020. There was a brief but expected price correction to $374 on November 06. ETH has since continued its upward movement to hit $465 on the 7th of Nov before a slight pullback to $435 the next day. At the time of writing this, the ETH price stands at over $530.

Ethereum’s Future on Scalability and Profitability

Another crucial factor that drives Ethereum’s adoption and popularity is its unifying standards, which simplifies integration into the Ethereum network. That being said, the Ethereum network has been plagued with bottleneck scalability issues for the longest time due to increased usage on the network. This has resulted in severe congestions, with the average transaction fees growing significantly.

The upcoming ETH 2.0 update is expected to resolve current issues with scalability.

According to Ethereum’s founder Vitalik Buterin -“The network is looking forward to the future of Ethereum scaling, ” which includes sharding that will be introduced with the forthcoming ETH 2.0.

The new function of sharding will accelerate these layer-2 techniques 100x further.

This, combined with Ethereum’s relation to DeFi, is potentially a significant value driver for ETH’s profitability. Of course, provided that the DeFi space doesn’t surpass Ethereum’s capacity and move away onto a different blockchain.

In the meantime, the value of Ethereum will continue to climb. It’s pushed by a rising utility of the coin, which must then push up its value in ‘fiat.’

Upcoming Ethereum Projects

Five years after its launch, Ethereum is still the largest general-purpose blockchain. As of now, around 200,000 active developers are building on Ethereum and over 1,400 projects. As exciting developments such as DeFi and Ethereum 2.0 are waiting in the wings, many users and experts are anxious about what this will mean for the network. That means, how these roll-outs will impact the future of Ethereum.

Some established companies like Trustology have started to prepare for the upcoming launch of Ethereum 2.0 and participate in the Codefi pilot run by Consensys (which funds an editorially-independent Decrypt). This project has subsequently drive ETH developers to fast track staking for their clients.

The upcoming Ethereum 2.0 rollout will go live in 2020 is one of the most significant events in the crypto world – comparable only to Bitcoin’s halving events. Ethereum’s 2.0 rollout will take place in phases. Phase 0 is due out in late Summer/early Fall. It will be a core upgrade of Ethereum’s entire ecosystem from a Proof of Work (PoW) consensus to a Proof of Stake (PoS).

The upgrade is expected to provide lower latency and higher throughout—two key aspects driving blockchain adoption.

ETH Price Predictions 2021 and Beyond

Forecasts of the future Ethereum price’s possible movement have to consider both external and internal factors.

While the most critical aspects for the moment remain the long-awaited Ethereum’s transition to Proof of Stake (PoS) protocol. As well as the phenomenal uprising projects of ĐApps, DAOs, and DeFi projects on the decentralized network. Considering these fundamental factors, the Ethereum price prediction looks positive for the upcoming 2023 and further 2025.

What Do The Experts Say?

There is a consensus among experts that the ETH price outlook will remain bullish in the coming years. According to insights from leading crypto sources like CoinTelegraph, Ethereum should go through a breakthrough this year.

Plus, much in-depth technical analysis points to ETH reaching highs of around $1400 by the end of 2020. Some analysts even predict that the second biggest cryptocurrency might reach new all-time-high (ATH) levels next year. Generally, the future of Ethereum is looking good in terms of its value and prospects.

ETH Price Predictions for 2023

The path to Ethereum’s all-time high is wide open to its fate associated with the billion-dollar DeFi space. The upcoming ETH 2.0 upgrade is another factor that will play a massive role in the rise in Ether’s value. All in all, Ethereum shall remain bullish and its value climbing to around $750 before year’s end is possible. Plus, the bullish trend is likely to continue in 2021. That is mainly based on the increasing interest of institutional and retail investors and due to a weakening global economy.

ETH Price Predictions for 2025

While the year 2025 is another peg on the board for expected milestones for the second most popular cryptocurrency. Based on past performance charts and current developments, the forecast for ETH indicates positive long-term growth. If Ethereum retains its growth patterns, there is room for its value to approach the level of $1,500 in the next five years. This price projection is calculated, taking into account the historical ETH price movements.

For a coin that rallied from $0.25 to an all-time high of over $1,400 per coin in just three years, the present moment offers an ideal opportunity to enter the crypto market at a time preceding historical changes that hold massive potential.

As both scarcity and demand continue to increase, investing in and trading ETH will become more lucrative as well.

Is It Worth Investing or Trading Ethereum?

As the cryptocurrency market continues to mature and merge with the traditional finance sector, it’ll give way to the new phenomenon of DeFi. Naturally, Ethereum will get more and more interest from institutional investors in the future.

Though it remains volatile, ETH is becoming a staple in the portfolio of retail and institutional investors and traders alike. As the crypto community is waiting for the necessary changes for the Ethereum blockchain, the increasing use of DeFi projects is already fueling the ETH value. Thus, the future of Ethereum is certainly looking positive.

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