Known as the “digital oil” of the crypto-space, Ethereum fuels the protocol layer. The second-largest cryptocurrency has hit new records at the start of 2021, at the value of $1522 making it reach a new all-time high and a market cap of $176,673,547,677 at the time of writing. Undoubtedly, the ‘Gold Is Lame’ statement from Vitalik Buterin, co-founder of Ethereum, proves to be true as the digital assets continue to gain popularity. It would not be wrong to say that we will witness ETH crossing $2,500 by the end of 2021. ETH vs BTC There is a never-ending comparison between BTC and ETH in investor’s minds. On learning the differences in details between these cryptocurrencies, I analyzed that it is similar to comparing cheese and vegetable pizza. Everybody has their own preferences! Although you don’t need to dig deep in terms of which is better, what we are more concerned about is to see the benefits you enjoy after investing in any crypto-asset. A short comparison of what these currencies are about will help us to get clarity. Bitcoin offers the facility to transfer without using any central authority in between, while Ethereum is built on the idea of blockchain rather than copying BTC. In terms of transactions, ETH is way faster. It supports up to 30 transactions per second. While in the case of Bitcoin only 4.6 transactions are possible in one second. ETH is a platform, i.e. it more than a currency, unlike Bitcoin which is a cryptocurrency and a store of value with a limited amount of supply. It is worth noting that Bitcoin is a cryptocurrency, while Ethereum is a decentralized platform to program other ideas. Ethereum Price Prediction The weekly charts of ETH show a high surge in its prices. The current value of ETH is $1695.098215 showing a rise of 1168% since 2020. And mind it – this price action is not by mistake! So now, let’s jump into the technicality of ‘why and how’ the price would hit $2,500 by the end of 2021. Ethereum Better than Bitcoin in 2021 The official launch of the Ethereum blockchain was in 2014, however, the future was not always clear. The claim that Ethereum can easily cross $2,500 in 2021 is due to the cup and handle pattern seen in its trajectory. The cup and handle show the bullish trends in the charts, where the right side of the chart shows the extending uptrend. There can be multiple reasons associated with this bullish behavior, for example: 1. Gold Is Now Lame If you remember the “Gold Is Lame” statement of Vitalik Buterin, then let me tell you the basics of it. The current market cap of gold is around $10 trillion, which is on and off 2% of the total global wealth. Simply if 2 to 3% of this switch to Bitcoin, the value of BTC will hit $100,000. Analyzing the pattern of 2017, where Ethereum gained an astounding 10,000%, BTC managed to add 1500% to its value. It has been seen that the BTC wave always pulls the Ethereum towards surge. Thus, the value of Ethereum is ought to go up in the coming year. If the trend of 2017 will be repeated, then it is no surprise that Ethereum will cross $2,500 by the end of 2021. 2. Launch of ETH 2.0 On the launch of the parallel staking network Eth 2.0, five years after the launch of Ethereum, a large no. of the user, participation can be seen on the ETH 2.0 network. Statistics show that investors are stacking Ethereum which is again a big factor in the surge of Etereum prices. The new chain is working as the backbone of a future Ethereum network. The release of the beacon chain on Dec 1, soon sets the Ethereum price All-Time High in a short span of two to three months. 3. The Demand for DeFi Applications and Institutional Investments Decentralized Finance has replaced the centralized ways of transferring money, where one can transfer money without any central authority in between. Since decentralized applications or dApps run on a blockchain network, mostly Ethereum due to its open-source blockchain-based decentralized platform, on which multiple applications can be developed. According to the coin base annual review of 2020, more institutional investors are buying ether, as it seems to be a store of value. The crypto-exchange is experiencing growing numbers of institutional clients looking for stronger returns and hence giving wind to the crypto bull. 4. Increase in Use of Blockchain Technology According to the statistics by the World Economic Forum, 10% of the global Gross Domestic Product will be facilitated by blockchain technology. Technology helps foster innovation. For example, facilitating healthcare records, sustainable energy sharing, food distribution, and … Continued
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