The price of ethereum (eth) is expected to be $5,114 by the end of this year, according to the average of forecasts compiled from a panel of 50 finance and crypto experts surveyed for the ethereum price predictions report. recent from finder.
Ethereum ether traded today at $4,416, a new all-time high for the world’s second-largest cryptocurrency by market value, according to data from coingecko.
Reading: Ethereum end of 2021
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what is driving the growth of ethereum
The expert survey conducted by Finder, a Sydney-based data and analytics company, was conducted on September 1. 24 to Oct 11 this year. panelists can own cryptocurrencies, including ethereum. according to finder, the published results came from a truncated mean, with outliers in the top 10% and bottom 10% removed. One of Finder’s panelists for this survey was Daniel Polotsky, founder and senior advisor at CoinFlip, a Bitcoin ATM network. Polotsky told Finder that he expected ethereum to end the year at $4,500 and that ethereum’s growth could even outpace bitcoin’s. “ethereum does a better job of supporting development on its blockchain and will have a lighter proof-of-stake mining model than bitcoin [which] means it can potentially be the backbone of web 3.0.”
Other search engine panelists who were bullish on ethereum mentioned the variety of blockchain use cases and first mover advantage.
“ethereum currently hosts an already large but rapidly growing alternative financial system in decentralized finance or defi,” origin protocol co-founder joshua fraser told finder. “Ethereum will eventually be one of the world’s leading financial settlement layers. the ethical price will reflect this future reality.”
Is ethereum market share under threat?
while rival blockchains like binance smart chain, cardano, polkadot and solana have emerged, the vast majority of defi protocols and stablecoins operate on the ethereum network, and ethereum still dominates with over 60 billion total value locked (tvl) US dollars in defi protocols, as defi calls it.
“ethereum has a first mover advantage, which is why nearly 80% of applications are built on the ethereum network, based on the state of dapps,” iwa salami, associate professor at the university from east london, seeker said. salami predicted ethereum
“so far, cheaper and faster blockchains (such as solana and avalanche) still don’t threaten ethereum’s competitors in this regard, meaning ethereum is likely to retain its dominant position for some time.”
but overall the finder panel still expects ethereum to lose an average of 30% of its market share to other layer 1 solutions like solana (sun), terra (moon) and avalanche (avax) over the next 12 months, with one in 10 panelists believing solana will one day overtake ethereum as the top defi platform.
“The jury is out on whether Sol will be the leader or one of the others,” said Gavin Smith, General Partner at Panxora Crypto. “The key to the winning player in this sector will be transaction costs along with transaction speed.”
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ethereum cost issues
smith is among those who are bearish on ethereum’s price, predicting its ether token will close 2021 at just $3,000, or more than a 25% drop from its current price levels.
“eth core developers have been extremely slow to resolve transaction cost issues on the ethereum blockchain,” smith told finder. “Costs have reached a point where most smart contract operations are now too expensive without integrating a tier two solution. other smart contract blockchains are showing better technology solutions that support higher number of transactions at lower cost.”
Amid the explosive growth of defi and nfts, scalability has been a key issue for ethereum as applications and user numbers continue to grow.
Work is underway to make ethereum more scalable, secure and sustainable with eth2 updates rolling out progressively. The beacon chain update, implemented in December, marked the first of the eth2 updates and brought participation in the ethereum ecosystem. but ethereum creator vitalk buterin, at a conference in shanghai this week, also said that a full release of ethereum 2.0 could take years.
“the merge” (the merger of ethereum mainnet with the beacon chain proof-of-stake system) will mark the end of an ethereum proof-of-work and is scheduled to take place in 2022. sharding, an update of several Phases to improve ethereum’s scalability and capacity by using shard chains to distribute network load across 64 new chains will follow in 2022, post-merger.
altair, the first mainnet update to the beacon chain, is scheduled for epoch number 74,240 on October 1st. 27, 2021, at 10:56:23 AM m. utc. An epoch is the main unit of time measurement in eth2. each epoch is a period of 32 slots and corresponds to approximately 6.4 minutes.
“this update brings light client support to core consensus, cleans up beacon state incentive accounting, fixes some issues with validator incentives, and increases punishment parameters per eip-2982,” according to a blog post by the ethereum foundation.
Most browser panelists (78%) expected the eth2 update to resolve ethereum’s scalability issues.
Speaking at the shanghai international blockchain week 2021 this week, buterin said that layer 2 was the future of ethereum scaling and the only safe way to scale ethereum while preserving the decentralization that is so fundamental for the blockchain.
the eth2 roadmap offers scalability and the first phases of eth2 are fast approaching, but base layer scalability for applications only comes as the last major phase of eth2, which is still years away, buterin said . stacks, a layer 2 solution that handles transactions off of the ethereum mainchain (layer 1) but publishes transaction data to layer 1, could help provide an immediate and significant increase in ethereum’s scalability.
see related article: vitalik buterin speaks: what lies in the future of ethereum?
Ethereum price forecast in 2025 and 2030
Overall, search engine panelists believe the long-term outlook for ethereum is strong and the price outlook is favourable. They collectively predict, on average, that Ethereum prices will rise to $15,364 by 2025 and then triple to $50,788 by 2030. Most panelists (63%) said now was the time to buy Ethereum.
but a significant minority, about two in five, of finder panelists predicted that ethereum’s price will be worth less than its current value by the end of 2021. about 28% of experts told finder it was time to “hodl”, while 9% of panelists said it was time to sell that ether.
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