Ethereum (ETH) is the second largest cryptocurrency in terms of capitalization, which is often considered as a choice for investments. There are many conflicting opinions on the coin’s prospects online. Some are convinced that ETH is completely dependent on the behavior of Bitcoin (BTC), while others believe that Ethereum may soon lose its altcoin status, becoming an independent cryptocurrency.
Ethereum Predictions
Cryptocurrency generally moves in the wake of bitcoin (BTC), albeit with greater volatility. Since the beginning of the year, the cryptocurrency has risen in price by 34%. Against the backdrop of the positive movement, ETH still retains great additional upside potential.
Ethereum is one of the first to respond to any positive movement in the industry. Also, against the backdrop of the crisis, Bitcoin and ETH are considered as an alternative way to store money, which will also push the asset to growth. In 2021, ETH may break the previous record and rise in price to the level of $ 2,000. The main impetus for this will be the tokenization of large corporations, which is already underway, but is not publicly advertised.
Many corporations are moving away from their own blockchains towards Ethereum, due to the ease of operation. In addition, it is much easier, faster and cheaper for tokens issued on the basis of Ethereum to get listed on cryptocurrency exchanges, which today is one of the most important stages in the development of the project.
What else you need to know about the situation of Ethereum
ETH, according to researchers at the San Francisco Open Exchange (SFOX), may soon lose its altcoin status. During the research, experts found a high level of correlation BTC to ETH. According to the SFOX team, the almost step-by-step repetition of bitcoin movements on the part of Ethereum indicates a similar reaction of the coin rate to events.
The researchers believe that this behavior of ETH indicates a high level of asset self-sufficiency. As a result, the cryptocurrency, in their opinion, is moving towards independence and may lose its altcoin status.
A similar point of view was presented by analysts at Weiss Crypto. In their opinion, in the future, Ethereum will be more focused on people who are interested in technical innovations, programming and solutions for creating modern developments. Bitcoin, according to experts, will not be perceived in a similar vein.
ETH also remains one of the most popular coins for mining. Experts have found that Ethereum and Bitcoin account for 99% of the income of cryptocurrency miners.
Summing up
Despite the fact that Ethereum, like most cryptocurrencies, is largely dependent on bitcoin, it has a special status. In fact, a lot of people see it as an independent cryptocurrency, not an altcoin BTC. To other conclusions:
- Many experts believe that Ethereum will be able to realize growth only against the background of the positive movement of bitcoin.
- Not all members of the crypto community are confident in the bright future of ETH. Some believe that the coin may soon lose the second line of the capitalization rating.
- Some experts presented many arguments about the growth in the value of the cryptocurrency. These included:
- the rapid transition of ETH to the PoS algorithm;
- the popularity of the coin among miners;
· the prospects for the development of decentralized applications and other developments based on Ethereum.
Hi there! I’m Sethu, your go-to guy for all things tech, travel, internet, movies, and business tips. I love sharing insights and stories that make life more interesting. Let’s explore the world together, one article at a time!
