Last week, the world witnessed a stunning recovery in the cryptocurrency markets. This period practically overnight raised the prices of all major and even minor cryptocurrency tokens, while it also brought in a breath of fresh air into a very stale and pessimistic financial ecosystem. The same reinvigoration is presently ongoing and promises even further gains for all digital currencies, including things like dogecoin, and other joke or meme projects. At the same time, there is also a quiet but ongoing struggle between the top two digital currencies, bitcoin and ethereum.
This competition has been going on for some time now, but the latest round of bullish sentiment is again highlighting the differences between these two cryptocurrency networks. Not just that, but the struggle between those two also is highlighting the technical and investment potential differences. Among those highlights it’s difficult not to notice that the ETH token is looking more and more promising as the year passes. For some analysts that outlook equals a normal certain continued growth of the ETH ecosystem in the months to come.
The previous period in the crypto market saw a movement up across the board that can be only described as a surge. In a space of a week, the price of bitcoin alone added nearly 30 percent to its value. Ethereum took the silver medal in that process, climbing some 20 percent. But, there is much more in store for ETH tokens, at least according to a panel of crypto experts. According to them, the same digital currency could double in price and reach nearly 4,600 USD before the end of the year, or even climb a lot more than that. The same panel did not share an optimistic prediction for the bitcoin value in the same period. Among the members of the panel was Daniel Polotsky, who is the founder of CoinFlip, a ATM crypto operation company.
He said that so far, ETH mostly followed cues from bitcoin. However, in the previous months, even with the strong bull market of the early 2021, ETH and BTC began to decouple. At the same time, more importantly, ethereum network continues to create and esplanade use cases for its operators that bitcoin network simply cannot follow in terms of technical ability. Polotsky believes that the price growth might be substantially faster than that of bitcoin’s, even inside of an ongoing (or reinvigorated) cryptocurrency price surge.
Upgrades and Updates
The same panel members also took the chances to point towards the further development of the ethereum network on a technical side. Like any complex digital venture that includes a growing user base, no matter if it is a cryptocurrency or esports or something other than that, a system has to adapt and evolve to factilite that growth. This is happening with ethereum on a regular basis, with a range of long-awaited updates and upgrades around the corner. All of them are designed to improve its efficiency and network scalability, which has been lagging its user acquisition.
The same is especially true for all instances of institutional technological adoption of ETH token, in situations where other systems utilize things like smart contracts or other decentralized finance features. Most of these developments began in 2020 and are now close to completion or at least the start of their implementation into the working network. Because of these, the panel took the opportunity to further entrench their bullish predictions about the market cap and price of the ethereum ecosystem..
While many changes for the second biggest cryptocurrency are in the cards, none of them compare to the biggest one, which is still some time away. Of course, that is the transition to proof-of-stake network, which would stop using the proof-of-work system and utilize the principle of tokens being held by their owners with the purpose of verifying and writing the shared ledger. Before it, the cofounder of the ethereum network, Vitalik Buterin said that the process of burning either tokens will appear before this major transition. The process of destring tokens through the so-called burning process should also make ETH tokens more sound than those from the bitcoin network.
At the same time, proof-of-stake should appear, in some shape and form, later in 2021 and possibly extend that rollout into early 2022. However, many believe that the same launch, once it is fully tested and checked for any unpleasant surprises, will appear live on the network even later than this. Whenever the new ledger starts working, however, it will surely disrupt the crypto markets in a very substantial manner.
Once proof-of-stake mechanisms come into play, the supply of ETH tokens will become scarce. The deflatory mechanism of burning and staking coins will be, according to experts, in the line of several bitcoin halving processes which would restrict the access to coins for new buyers. Because of that, anyone looking to invest into ETH will likely seek their chance prior to that period, amassing as many coins as possible as quickly as possible. Most will target price slumps as the good moments to seek out that investment opportunity. Others, however, will spread out their purchases over a prolonged period and many different price points.
Because of that, the trend of ETH purchases will remain steadily positive in the coming months, at least according to the panel. Most agreed that the value of 8,000 USD per ETH token is completely feasible for the end of the year. The bottom line in any case is that this token right now represents a better store of value compared to the bitcoin network’s BTC token, which simply cannot compete in the technical aspects with ethereum. The experts, as well as the investors, fully understand that there is no way to change that in the future without massive chances to the bitcoin network. Currently, there is not even any discussion about the same possibility, so the difference in network potential will only continue to grow as ethereum marches ahead. The price of the ETH token will certainly mimic that movement.