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Launched in 2014, Ethereum is currently the second-biggest cryptocurrency in the market. With a market valuation exceeding $400billion, it ranks only second to Bitcoin. As the leading altcoin (A term used to refer to all cryptocurrencies other than bitcoin) Ethereum continues to cement its place as the cryptocurrency of the future.
With the numerous crypto in the market today, it has become hard to make sense of investment options and decisions. Most investors are left with the option of making decisions based on social popularity.
Ethereum Value Proposition
Most analysts today agree that Ethereum is one of the most adaptive cryptocurrencies in the market. It has positioned itself as the must-have solution with a big leadership in blockchain solutions. With this in mind, I trust the below reasons will help you in understanding why you should invest.
Ethereum is probably the best-priced cryptocurrency in the market today. Trading at an average of $3600, this is lower than its highest of $4,200.
Some analysts believe it is trading at a discount. With all the developments and products Ethereum is supporting, they have the potential of easily supporting higher prices. Some of these include the use of smart contracts, development of other cryptocurrencies on the Ethereum protocol.
Speaking to CNBC, “Mark Cuban” said that he believes Ethereum has the most upside as an investment.
It is a confirmation that most investors believe in the its potential. Hence, you should take this chance to buy at a discount.
London Hard Fork Update
This is the latest update done on the Ethereum network. This update will revolutionize how the Ethereum network operates and aims to make the currency better, scarce, and more environmentally friendly.
This will be achieved through changing from the Proof of Work to the Proof of Stake concept. In the long run, it wants to eliminate the traditional mining process and embrace the staking process. POS will remedy the rising objections by climate activities who believe the energy use during mining results in climate destruction.
The update also aims at reducing the supply of Ether coins. Supply reduction will help boosts the price making the coin more valuable. The update is still new making this the right time to buy. Once the updates take full effect, the price is likely to shoot.
NFT Market growth
Ethereum is the market leader in the development and uptake of NFT solutions. This is enabling the exchange of digital assets. Huge amounts of money are already changing hands every day as NFT transactions grow.
As NFT becomes accessible and more creators get aware, there are expectations that the industry will keep growing into the future.
This will continue boosting the value of Ethereum going forward. These industries are still very new and have huge room for growth.
I trust these three factors will be key in driving Ethereum’s price. The market is still young making growth inevitable. There are predictions Ethereum has a chance of hitting the $10,000 mark.
However, it is key to remember investment in cryptocurrencies remains risky. Hence, you should ensure you have a full understanding before putting in your money.