Is Ethereum a good investment in 2021? What is Ethereum worth in 2025?
If you are wondering if it is too late to buy Bitcoin or Ethereum now, one that has already traced off an impressive trajectory and is very high, the chart below may help you. It shows where we are, in relation to the course of Bitcoin in the previous uptrend of 2017. It is this red dot that you see at the bottom right.
There are people who bought Bitcoin and Ethereum for a dollar and sold them for two or five because they multiplied their money. They turned out to be tragically wrong. For today’s conscious investors, the placement is long term. They will not sell until Bitcoin becomes the new global reserve currency or Ethereum the global computer. The daily fluctuation of their exchange rate with the euro or the dollar is not something that concerns them. This investment philosophy remains to be seen if it will be right. Whether they will become new millionaires or their hopes turn out to be illusory.
Here, will focus on the investment perspective of Ethereum, although to answer how high its price can reach, we must first know what the top will be for Bitcoin. It is a given that the course of the cryptocurrency leader will play a decisive role for the entire market. Nevertheless, the second cryptocurrency in capitalization has proven to have autonomous dynamics.
Based on behavioral economics, Ethereum bears a strong resemblance to Bitcoin, as it has been heavily criticized. That it is useless, made of compressed air, is not safe, its variability is so heavily. However, his supporters believe that has a great narrative. A platform for planned money. That is why they claim that the cycle of its adoption and increase of its capitalization will be as explosive as that of Bitcoin.
These are different assets, different ecosystems, same adoption. Same in many places, but at the same time different. Let’s see what Ethereum investors should pay attention to. The conditions that will make it score even higher than Bitcoin.
The focal points
**CME futures on Ethereum starts right now. Their launch has raised expectations. Hedge funds and even insurance funds have the opportunity to have an exhibition in Ethereum. How do we know? Because from there many people also get a place in Bitcoin. It is difficult for them to acquire and, above all, maintain direct coins, as there is still the issue of the custodian that has not been reliably resolved. Why now; Because none of the institutionalists wanted to be first, nor last.
Some are worried, because they have linked the start of Bitcoin futures again by CME, with its peak at the end of 2017. Indeed, they had contributed at the end of the party. Even Leo Melamed, President of the CME group, had stated that “he will tame Bitcoin”. But the conditions were completely different then. Now Bluford Putnam, the group’s chief economist, and chief executive told Bloomberg that Bitcoin is an “emerging competitor” to gold.
*At the previous peak of Bitcoin in 2017, Ethereum reached $ 1,500. When Bitcoin surpassed $ 40,000, it had only $ 1,400. It seems to owe a significant increase. Maybe that’s why in the last few days it broke the previous high of 2017. Also, a new historical high was noted by the addresses of Ethereum, which have even a minimal amount of money. They exceeded 53 million, according to Glassnode.
In addition, the price of Ethereum reached another milestone, which shows that this time the rise has a stronger basis. For the first time in its history, it remained over 30 days with a closing price of over $ 1,000. At the previous peak 3 years ago, he had only 25 days left above this limit. During the previous bull run, the volume of transactions in its network ranged between 1 and 4 billion dollars. It now stands at $ 12 billion, according to a Grayscale study.
**There are high expectations associated with DeFi. Indicatively to mention that according to DappRadar, Uniswap, the most popular decentralized application reached 313,600 users in the last month. An application that did not exist until November 2018.
The faster they grow, the more they use the Ethereum platform and pay to use it. To motivate the Ethereum network to have remote computers keep data in the blockchain, it uses Ethereum currency (ETH) as a form of payment to fund the network. Anyone wishing to build an application on their network will have to pay transaction fees for the computing power required to use it. The amount of ETH required is decided by a method called GAS. As transactions increase, so does value creation.
**Another factor that boosts its value is the stable coins category. More and more institutions are interested in issuing their own currency that is locked in the dollar or some other dominant currency. Demand for them is growing. Not only in the volume of currencies but also in the volume of transactions. Almost everything is based on the Ethereum blockchain.
**Next is gaming (games) and NFT (digital valuables). Categories that have started to become very popular in recent months. This is something much bigger than most people understand. In a world where pandemic constraints prevail or digital applications are preferred for convenience, the undisputed trend is to make more and more use of the digital world. Whether for business activities and transactions or for games, meetings, socializing, entertainment.
Where success will be judged
All these ambitious plans and impressive prospects will remain mere ambitions if there is no transition to Ethereum 2. An upgraded version of today’s Ethereum will solve the scalability hub. Not an easy job. Trying to upgrade today’s Ethereum blockchain while it works is like trying to upgrade a jumbo jet in the air with thousands of passengers. It is better to build a new plane on the ground, inside a shed. So they decided to make a new blockchain. When completed, the old Ethereum will be merged with the new one and all applications will be upgraded.
The process will probably take two years until it reaches the final stage. However, even then it will not be a complete product. It is expected. Apple and Microsoft are constantly updating and improving their system. Ethereum will never be finalized. This is the new Internet. There will always be frequent upgrades. This is something that stands out with Bitcoin, which is dominated by stability. Upgrades are rare.
** This article does not constitute an incentive to buy or sell the listed securities. Provided for informational purposes only.