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Ethereum is no doubt one of the most successful cryptocurrencies in the market currently. It ranks as the number two just behind the big boy Bitcoin.
Since its launch in 2014, it has relied on its innovative capabilities to gain market attraction and value. Currently, its market valuation exceeds 500 billion dollars with each Ether coin pricing $4,700 at the writing of this article.
Most analysts believe Ethereum is yet to hit its prime price. Meaning it still has huge growth potential and could potentially go higher in the future.
To evaluate the potential of Ethereum, you need to understand its capabilities and the undergoing efforts to support the coin’s value
Use of Smart contracts
The smart contract is among the best Blockchain capabilities. Blockchain is the decentralized technology that creates cryptocurrencies such as Ether and Bitcoin.
Ethereum is the market leader in the development and deployment of smart contract solutions. Smart contracts enable the carrying out of transactions in a faster, confidential, and secure manner.
This capability is gaining attraction from various industries such as financial, government and Health. As the use of smart contracts expands, so will the value of Ethereum. Hence, it is one of the major reasons why you shouldn’t let go of your Ethereum coins yet.
London Hard Fork Update
Recently, Ethereum did a major update on its network to achieve various objectives. Some of these include;
- Changing the network from the proof of work to the proof of stake concept
- Introduction of a coin burning strategy
Among these two, perhaps the coin-burning strategy is exciting investors more. It aims at ensuring a gradual reduction of the coins in circulation to make the crypto deflationary.
This will likely help Ethereum’s price to keep rising making it more rewarding in the future. Coin burning is gaining pace with over 4 billion dollars of Ether coins already burnt.
You can check the burning progress on the watchtheburn website.
Decentralized Finance Capabilities
Ethereum is leading in the decentralization of financial services. This is a vacation from the traditional way of offering financial services.
DeFI is becoming a go-to approach in ensuring people can access financial services easily and affordably. Traditionally, financial services have always been bureaucratic and discriminating.
This has led to financial exclusion across a huge number of populations. However, DeFI is handling this by eliminating these persistent challenges.
These capabilities are attracting both the governments and financial institutions to explore the use and deployment of these services.
As the market expands, this will help bring more value to the Ethereum coin. Hence the need to keep holding.
Future of Ethereum
Some analysts believe Ethereum Is heading for success in the long term. Some believe there is a chance it could outpace bitcoin eventually.
Whether this happens or not, the general sentiment of Ethereum is bullish. In the near term, Investors are aiming to hit the $5,000 mark and later potentially the $10,000 price.
These are some of the factors and products that could assist the coin in getting to these levels. Hence you should perhaps keep holding onto your coins.