As the crypto market awaits the step of upgrades coming with the Ethereum 2.0, the price of the second-largest cryptocurrency went above $2300 for the first time in over 2 weeks on Sunday, July 4.
With the movement on Sunday, the price of the cryptocurrency gained almost 20 percent as ether was struggling under $2,000 for some time previously. However, although the price showed some positive movements, it proved to be short-lived as the price of ether on Monday.
That said, the price of the cryptocurrency is thought to be awaiting further room as the upcoming Ethereum network upgrade is approaching. The new network upgrade is said to bring the implementation for EIP-1559. The update will implement a base fee model, which will reduce the Ethereum gas fee drastically. Because of this, this update is said to be very important for investors in the market.
Ethereum 2.0 & its importance
The upcoming upgrade of the Ethereum network is said to have a huge impact on the price of cryptocurrency. About two weeks ago, the Ethereum 2.0 blockchain showed the largest single-day staking inflow, with as much as 134.112 K ether coins. In addition, the ether supply at the crypto exchanges is in decline, which is considered to be a positive indicator.
The upcoming Ethereum 2.0 network update has been long-awaited in the market. In fact, according to the official sources, the company has been developing the Ethereum 2.0 network for over 7 years. Working on this update started back in 2014.
The update marks a new statement in the cryptocurrency market. There are many things that are going to change with this new update. This includes Ethereum becoming more environmentally friendly.
The environmental impact of cryptocurrency mining has been discussed by many for a long time now. Recently, Tesla’s CEO Elon Musk announced that the company would halt receiving bitcoin payments mainly because of the environmental issues associated with bitcoin mining.
In this situation, Ethereum 2.0 stepping away from the old and environmentally not-friendly method are said to be very helpful for the future performance of Ethereum. Some even went as far as saying that the cryptocurrency would have a chance to even flip bitcoin.
However, saying how the new release will impact the performance of ether in the market is near impossible. One thing is clear, however. The update will be a huge step forward not only for Ethereum but for the whole crypto market in general.
More people trading crypto
Another very important thing to keep in mind when discussing the future prospects of Ethereum is how much the number of crypto traders has increased so much over the past few years. As the number of crypto traders increases, more and more people are showing interest in not only bitcoin but altcoins as well. This includes ether.
There are many reasons for the crypto trading popularity. One of the biggest ones is the crypto market boom, which increased the prices of cryptocurrencies, including bitcoin and ether to all-time highs. These types of booms are attracting even more investors to the market.
But, this is not the only reason. Another huge and very important reason for the increasing crypto popularity is how easy it has become in recent years to be part of this market. There are numerous exchanges offering traders the ability to buy, sell, and store cryptocurrencies in one place.
This is making the crypto trading market more accessible than ever before. In addition, there also are many software companies that are developing different types of trading bots to make investing in the market even easier.
One such company is Bitsgap, which has created a special trading bot. Traders can use this software for trading or use the crypto trading bot demo version and test it out before using it. The crypto trading bot of Bitsgap is capable of not only providing traders with signals but actually opening buy and sell orders on its own.
Thanks to this, traders of any experience level can trade any of the cryptocurrencies, including ethereum and bitcoin.
Future prospects of Ethereum
The future prospects of Ethereum remain positive. Recently, Digitalcoin reported that its predictions for Ethereum are positive for the longer future as well. By 2021, Ethereum is expected to have an average price of $2,707, for 2022, it is expected to increase to $3,382. Over the longer term, the company projects for the ethereum to climb to about $5,852 in 2025, and $8.488 in 2028.
As of today, Ethereum is the second-largest cryptocurrency in the market after bitcoin. The upgrade of the network is said to be aimed at increasing the network’s scalability and security. In addition, one of the biggest things that are coming with the new update is the fact that the upgrade will be shifting from bitcoin’s proof-of-work consensus algorithm for verifying blocks to a new proof-of-stake algorithm.
Thanks to this, the mining process of ethereum is said to become much more environmentally friendly, which can be very important for cryptocurrency.
However, while many remain to be positive about the upcoming update of the network, others still remain to be skeptical about the future of the cryptocurrency. Recently, Twitter’s CEO said that he still does not plan to invest in ethereum. How the price of ethereum will be affected by the release of Ethereum 2.0 is still up to debate.
