Will the Price of Ethereum Be Able to Recover its Old All-Time High and Surpass It?
2022-05-24 16:29:22
Will The Price Of Ethereum Manage To Go Up This Year?
With a market capitalization of around $250 billion, Ethereum is the second leading form of cryptocurrencies and the one most used for interacting with smart contracts in the DeFi space. ETH’s value is trading at around $2,000 in May 2022, which is significantly down from November 2021 highs that approached $5,000. During the last few weeks, the cryptocurrency market has not been at its best, perhaps due to global geopolitical news and economical uncertainty. The trend seems to be bearish and Ether is struggling to maintain its price supports, just like almost any other cryptocurrency.
Most of the time, short-term prices do not necessarily indicate the real value of the assets, especially in the cryptocurrency industry. In the past months, Ethereum has improved greatly in terms of technical development and adoption. In fact, its protocol is transitioning to a less energy intensive version called “Ethereum 2.0”, that could make it more appealing and sustainable. So far this transition is going very well and once it will be completed, more people might be willing to buy Ethereum and hold it long term.
Nowadays, because of the huge number of users, it has become extremely expensive to transact on Ethereum. To solve this problem, the team has developed new upgrades to the protocol’s infrastructure, but the process advances quite slowly. In the meantime, entirely new blockchain networks are surging aiming to become potential Ethereum alternatives. Projects like Cardano, Solana and Tezos are adding new competition by developing more scalable and cost effective solutions and attracting the attention of several DeFi users away from Ethereum. In theory, these could become threats for Ethereum. The key factor that will allow Ethereum to preserve its leadership position in the DeFi world is the complete success of the current update. If this happens, then we can see the price of Ethereum recover its all-time high and probably surpass it during the next bull market.
With a market capitalization of around $250 billion, Ethereum is the second leading form of cryptocurrencies and the one most used for interacting with smart contracts in the DeFi space. ETH’s value is trading at around $2,000 in May 2022, which is significantly down from November 2021 highs that approached $5,000. During the last few weeks, the cryptocurrency market has not been at its best, perhaps due to global geopolitical news and economical uncertainty. The trend seems to be bearish and Ether is struggling to maintain its price supports, just like almost any other cryptocurrency.
Most of the time, short-term prices do not necessarily indicate the real value of the assets, especially in the cryptocurrency industry. In the past months, Ethereum has improved greatly in terms of technical development and adoption. In fact, its protocol is transitioning to a less energy intensive version called “Ethereum 2.0”, that could make it more appealing and sustainable. So far this transition is going very well and once it will be completed, more people might be willing to buy Ethereum and hold it long term.
What Influences Ethereum Price the Most?
Ethereum has played a fundamental role in the construction and improvement of smart contracts opening the doors to all the DeFi applications that we know today. Today, it is still the most robust and widely used virtual machine in the world of blockchain, and able to manage billions of dollars thanks to Ethereum smart contracts. In order to interact with these smart contracts, a user must use ETH to pay transactions meaning that he must first purchase the tokens. Therefore, the use of ETH in the DeFi ecosystem is the main factor influencing its price.Nowadays, because of the huge number of users, it has become extremely expensive to transact on Ethereum. To solve this problem, the team has developed new upgrades to the protocol’s infrastructure, but the process advances quite slowly. In the meantime, entirely new blockchain networks are surging aiming to become potential Ethereum alternatives. Projects like Cardano, Solana and Tezos are adding new competition by developing more scalable and cost effective solutions and attracting the attention of several DeFi users away from Ethereum. In theory, these could become threats for Ethereum. The key factor that will allow Ethereum to preserve its leadership position in the DeFi world is the complete success of the current update. If this happens, then we can see the price of Ethereum recover its all-time high and probably surpass it during the next bull market.
How to Buy Ethereum Easily and Safely?
If you believe that Ethereum will be able to maintain its leadership and increase its price, as it has done historically, you may want to allocate a small part of your portfolio in ETH. Typically, the best way to buy your first Ethereum is to rely on a secure and easy-to-use crypto exchange. A great example of these is Gate.io, since they are always attentive to the needs of the users and, thanks to their user-friendly trading interface, allow you to buy Ethereum in a few simple steps. Gate.io also allows you to exchange a multitude of coins with Ethereum because of its advanced trading platform. Finally, it allows you to buy ETH by either using your credit/debit card or by depositing fiat currencies with a bank transfer.
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