Ethereum is the second largest crypto in the world, making it one of the most popular portfolio additions for digital asset adopters. It’s not difficult to see why, considering that it is significantly more stable compared to most of the other altcoins, meaning that it can also offer a better store of value over the long term on top of ensuring that investors don’t lose capital by investing.
Over the past year, however, investors have found themselves navigating some truly murky waters as prices continued to plummet. However, it seems now that Ethereum is on the mend and that investors can rest assured that the crypto will soon return to its previous values. Yet, the shift appears to be more gradual than initially believed, and it might still take a while for ETH to go back to its 2021 values.
Table of Contents
2023-2025
Predictions are one of the most familiar aspects of the crypto environment, as investors are constantly looking for signs that could provide an indication of future trends and could, as a result, help them make sounder investment decisions. For the most part, they aren’t considered reliable tool, especially since it often seems like everybody has a different opinion on how things will change.
However, most investors seem to agree that crypto is set to experience a significant bull run that’ll change how the market looks. While prices are still facing resistance approaching the $2,000 milestone, considerable gains have occurred over the past month, leading many to believe things will change soon enough. Currently, the main theory is that market capitalization levels will grow by about 11.22% by December, with the prices approaching $2,200.
The upwards trend is expected to endure and become more visible over the next few years. For instance, in 2024, Ethereum is expected to approach the $3,000 milestone, a 42.43% gain compared to the price of July 2023. Others believe the climb might be even more significant and skyrocket by 108%, surpassing the $4,000 value. Even more daring estimates see Ethereum get to $8,200, but that prediction will likely be too optimistic.
If traditional price points are to continue, then realistic predictions show that 2023 will take Ethereum above $3,500, an increase of over 80% compared to July 2023. This is, however, only if the market is left undisturbed by external influences. Internal aspects will all leave their mark, including the tech trends that will become more popular, developments within the digital asset sector, changes for the tokens, and the introduction of the Dencun upgrade.
Ethereum cartel
Recently, the Ethereum blockchain became the center of controversy when some reports began showing that the blockchain might be under the influence of a group of miners referred to as the “Ethereum Cartel.” This group is allegedly very powerful and influential, controlling a significant portion of the platform’s power. This is important to know, as it could mean that group members could manipulate transactions in their own interest.
Many have criticized the cartel’s activities, claiming that such activities would severely impact the platform’s fundamental ideas of transparency and decentralization. Others have stipulated that the activities aren’t due to organized actions but rather a result of vulnerabilities within the system and that additional upgrades will remedy the problem.
But is there actually a cartel out there? Some have become suspicious after noticing the staggering amount of coins present in the blockchain’s staking pools. And while many believed that’s not necessarily a problem, other investors have complained that these pools have become too large. Figures show that rETH supply has increased by around 30% compared to those of stETH. The more the miners boost the staking, the bigger the rewards. So, when looking at the figures and analysis, it seems that the situation hasn’t changed so far and that the Ethereum Cartel remains in place.
Whale transactions
Despite the relatively mild growth Ethereum has recorded, its sustained improvement has drawn the attention of whale investors. As a result, the blockchain has become the center of a significant number of massive transactions. The number of transfers has skyrocketed by over 54%, the equivalent of nearly $3 billion.
The impact of whale transactions is felt almost immediately within the system. In this case, the bullish performance has been the clearest indicator, as the ETH coin has nearly reached the $2,000 milestone. Weekly, the cyber coin has recorded a growth of almost 4.10%. These transactions, which typically involve over $100,000 worth of cryptocurrency per time unit, have never been so noteworthy, being able to truly propel the marketplace.
Circuit Breaker
Since its incipient days, the Ethereum blockchain has been known for its ability to drive innovation within the crypto world. And despite being around for several years and becoming established among traders, it seems there’s no limit to the potential improvements the network will come up with. Currently, the community has proposed the introduction of a circuit breaker that would protect the decentralized finance protocols against outflows and hacker attacks.
When this feature is triggered within the blockchain, token outflows will be blocked at a protocol-wide level. This will happen when a predetermined threshold is exceeded. The good news is also that the technology doesn’t affect the structure of the underlying system. The introduction of this technology comes after community members analyzed the situation and determined that the system simply lacks the means to respond accordingly in the event of a hack.
With the introduction of the circuit breaker, a cyber attacker won’t be able to drain a contract in a mere few seconds. Moreover, it’s more likely that the funds can be recovered.
To sum up, cryptocurrencies have been steadily growing since the beginning of 2023. While there were several setbacks along the way, the prices have begun climbing again, and it seems they will continue over the next months. If things go well, the market will continue to develop over the next two years as well.
As one of the most important cryptocurrencies in the world, Ethereum has been a significant part of the growth tendency.
