Can Ethereum Reach $100,000 A Coin In The Future?

Currently, Ethereum is trading around $3800 according to data from CoinGecko, hence making a jump to $100,000 will take several years, and it will depend if the altcoin maintains its relevance over the years.

The $100,000 mark has currently been set for Bitcoin, with some analysts believing that the primary cryptocurrency could reach and even surpass this mark by the end of the year. Therefore, could Ethereum follow Bitcoin to these levels soon or later?

Can Ethereum Reach $100,000?

There is no definite answer in the crypto market regarding what the prices of cryptocurrencies will be in the future. However, one can evaluate the reasons that support the race towards $100,000 and those that inhibit such a rally.

For starters, Ethereum’s immense growth has been attributed to the network’s relationship with decentralized finance (DeFi). However, the network has been losing in this race because it lacks scalability and has slow transaction speeds and high fees. This has made the network less preferred by DeFi developers.

However, this is expected to change with the unveiling of Eth2.0, an Ethereum scaling solution expected to make this network offer lower transaction fees and increase the number of transactions processed per second. Eth2.0 is expected to go live in 2022, and it will give the network a competitive edge over networks such as Solana that are taking over the DeFi market because of speed and cost-effectiveness.

Once DeFi starts flocking into Ethereum again, we could see a major rally, as Ether tokens will be in high demand. Moreover, DeFi is still new in the crypto space, and its use cases and adoption is expected to only increase in the coming years, which will cause major bullish gains for native tokens of networks that support these projects.

The other reason that could trigger Ethereum’s rally towards $100,000 is increased use cases of the network besides of DeFi. For example, non-fungible tokens (NFTs) are becoming more common on the network. The NFT boom could proceed into the future, and if Ethereum becomes a hub for these assets, a race towards $100,000 could be ignited.

Beyond the Ethereum network, Ether tokens could also gain all on their own if they gain adoption. Bitcoin, for example, has been on a 100% rally in the past three months, which is attributed to an influx of institutional investors. Ethereum is the second-largest cryptocurrency; hence it could attract investors who want to diversify their crypto holdings portfolio.

The US Securities and Exchange Commission recently launched a Bitcoin futures exchange-traded fund (ETF) that propelled the values of Bitcoin to six-month highs. Besides, the fund is expected to attract institutional investors further.

The SEC could also approve the trade of an Ethereum futures ETF, creating a major ETH rally. Moreover, it could bring the institutional interest that Ether has been craving; hence the coin could see major bullish gains, which could pave the way for it to rally towards $100,000.

Could Ethereum Surpass Bitcoin?

This question has been one of the greatest battles in the crypto sector. Ethereum Flippening Bitcoin could happen if the altcoin reaches the $100,000 mark before Bitcoin. However, this is not a question that can be answered by a simple yes or no without evaluating some factors.

Firstly, in terms of use cases, Ethereum could almost surpass Bitcoin and could have even surpassed it. While Bitcoin mainly has its use case in being selected as a means of payment, Ethereum has diverged towards extra platforms such as DeFi and other use cases made possible by its blockchain.

On the other hand, the factor that could enable Ethereum to surpass Bitcoin is that Bitcoin’s network fails to evolve with the developments happening in the blockchain sector. Ethereum is switching to a proof-of-stake consensus from a proof-of-work consensus as part of its journey towards achieving scalability. However, Bitcoin is still PoW, and there is little chance that this will change, as its lead developer has remained anonymous.

Despite analyzing all these factors, the question of whether Ethereum will reach $100,000 or even surpass Bitcoin in market capitalization can only be answered with time.

Leave a Reply

Your email address will not be published.

Related Articles
Read More

What's The Whole Fuss Around MEV (Miner Extractable Value)

A blockchain is a completely decentralized system where there is no central authority to authenticate or verify any transaction. Finance is such a critical thing that still for each transaction, verification is mandatorily required. For validating a transaction on blockchains, few nodes within the network...
Read More

What Cardano Needs to do to Surpass Ethereum in the Future

Currently, Cardano ranks as the third-largest cryptocurrency with a market capitalization of around $77 billion. Ethereum has a market capitalization of around $380 billion; hence for Cardano to surpass it, the network needs major adjustments that will increase the use cases and demand for ADA...
Total
0
Share