A veteran trader has predicted that Ethereum, the second largest cryptocurrency in the world could get as high as $10k by the end of this year. He also believes that the cryptocurrency has a chance to even outperform Bitcoin during this timeframe.
Ethereum has been in the shadow of its larger competitor Bitcoin for a long time, almost 5 years in fact. This is half of the entire existence of the cryptocurrency sector altogether. The second largest cryptocurrency has posted considerable growth with time, outperforming many other assets but it has so far stalled in this bull cycle. Currently, Ethereum represents 8% of the entire crypto market capitalization.
There are some legitimate reasons why Ethereum hasn’t been able to catch up with its more illustrious competitor. The main reasons are network issues. The cryptocurrency faced immense problems especially during the last bull cycle of 2017-18. Its transaction costs rose and become too high all too quickly and the network became overburdened with long queues. Its functionality and scalability were also exposed to be too less for an actual worldwide adoption and therefore it was one of the hardest hit coins in the 2018-2020 bearish season.
However, the ETH 2.0 upgrade is now being rolled out to handle the core issues of the network. They include a shift to less energy-intensive Proof-of-Stake (PoS) mining approach, increased scalability to enhance blockchain functions and a more streamlined performance. The first part of the upgrade has already been achieved by the network and the future is looking very promising.
The promise of ETH 2.0 and increased interest due to the overall bull cycle 2020-onwards has once again awakened the ETH bulls and they are now at full stretch. Ethereum recently posted its new all-time high of around $2.2k and looks set to post newer ones in the near future. However, the slower progress of the crypto this time around has some skeptics question its long-term feasibility going forward especially during this bull run.
On the other hand, there are some veteran traders who believe 2021 is the year of Ethereum, not even Bitcoin. According to Scott Melker, a well-known trader with pro-Ethereum leanings:
It’s like investing in the Internet in the early 1990s to me…., I don’t see why that’s crazy. It’s basically just under a five X from here. […] Bitcoin did almost three times that last year.”
While nothing is impossible in the crypto industry right now, a rise to $10k would be challenging for Ethereum. Its upgraded capability is still not yet achieved and even in current scenario it had some transactional issues in between, even though nothing major. So, will Ethereum rise as high as this Youtube claims? Unlikely but if scalability is achieved, then the sky is the limit for the programmable network.
Image source: pixabay.com
Don’t worry, we hate spam too
one weekly digest, just the important stuff.
How about some social? Follow us on Twitter!