Ethereum price prediction: What would be the price of Ethereum by the end of 2021?

Pramod Dhakal
February 22, 2021

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Ethereum Price Prediction: What Would Be The Price Of Ethereum By End Of 2021?

Bitcoin and Ethereum are undoubtedly the top cryptocurrencies that are a front-runner when it comes to investment. For first-time investors perhaps these two currencies provide better stability. With the current volatile market, it’s hard to predict what would be the price of ethereum by the end of 2021. With that said we have put together some of the expert opinions on ethereum price prediction.

Bitcoin is hyped, and that is obviously one of the causes of its current rally. However, even without the media hype of it’s rival, Ethereum outperformed Bitcoin in 2020. ETH went from $90 in March 2020 to $1350 in January 2021 – a fifteen fold increase in less than a year.

What changed? In December 2020, Ethereum switched from Proof-Of-Work to Proof-Of-Stake. Proof-Of-Stake rewards dividends to those who own coins – speculators are buying Ethereum anticipating staking rewards.

Ethereum’s rise is different from Bitcoin’s in that it is not hype but real technological value in Staking. Ethereum’s transactions were previously validated by Proof-Of-Work, but coinciding with the price rise is a transition to Proof-Of-Stake, where the owners of coins are stakeholders in the validation process. In some PoS cryptocurrencies the stakeholders earn a small staking reward just for holding coins.

Proof-Of-Stake is a game-changer for Ethereum use in the real world. This technology can increase the number of transactions per second, which will decrease the transaction fees – increasing the usefulness of the currency. Just holding Ethereum and staking it will be a new form of passive income to invest in.

At our exchange, over the past year, we’ve seen a strong move towards ETH, coinciding with the technical changes in Ethereum.

Since Ethereum just moved 10 fold in 1 year, it could do it again this year. If the transition to Proof-Of-Stake does not turn out as expected, Ethereum could fall. The founders of Ethereum own huge quantities of ETH, which somewhat centralizes the staking process compared to other coins. If they take advantage of the new highs and sell off, it could affect the price.

In the last months we have seen lots of institutions trusting in Bitcoin and the blockchain technology. I believe it’s just the start. From my point of view, Bitcoin is the most famous crypto currency while Ethereum is more powerful version of blockchain technology as it can run smart contracts of a lot of DEFI products, issue token etc. So it’s valued for infrastructure. I’d compare Bitcoin with gold and Ethereum with oil.
Maximilian Schmidt

So we saw a lot of great DEFI projects brought to life on Ethereum where you can interact peer-to-peer without an intermediary with custom use cases, e.g. decentralized exchanges, the chain link project where we can add real world data into the blockchain.

In future there would be much more security token offerings (STOs) and Ethereum can be the base of those STOs that can replace traditional stock and everything that is currently traded on old exchanges can be tokenized and transferred in decentralized kind of way. So Ethereum enables that and gives a great opportunity to run the decentralized ecosystem. It already works in the way I described, it will grow more and people will recognize it more.

The Ethereum (ETH) rally is largely stemmed from the ecosystem that was created off the back of the platform. Many cryptocurrencies have chosen to build off the ETH network due to its ability to develop from the smart contract network.

ETH addresses holding 1 ETH tops all-time highs. Why? The price has soared, and the interest in the asset has grown substantially. It is also the platform on where most decentralized finance products are built on.

Interestingly, the amount of support from cryptocurrency exchanges for ETH will only add further interest in the currency, resulting in ETH becoming more available to trade.

Institutions and large funds are also backing ETH, including PayPal, who are actively promoting the cryptocurrency. With Paypal having more than 300 million users worldwide, this could add further fuel to the fire for another strong year for ETH.

As you can see from the chart above provided by @glassnode on Twitter, the daily trading volume on ETH futures almost doubled, showing us the institutional interest.

All this suggests that the price of ETH could continue on its bullish run throughout 2021. I wouldn't be surprised if we saw ETH heads toward $3000.00 by the end of the year.
Jonathan Kibbler, Head Currency Analyst, Blueberry Markets

Ethereum Price Prediction: Further evidence to validate the claim.

Evidence #1: Ethereum has more real-world technological usefulness than Bitcoin. Bitcoin’s only real usefulness is a decentralized ledger. On the other hand, Ethereum’s smart contracts are Turing Complete, meaning every type of app imaginable can be built on them.

It is entirely possible Ethereum could exceed Bitcoin’s market cap some day, because it already exceeds it from a technical perspective. While this does not specifically say anything about what Ethereum will do in 2021, it can be used to support additional arguments. Ethereum is backed by Fortune 500 corporations as part of the Ethereum Alliance – not as a speculative investment like Bitcoin, but out of necessity for its real-world technological breakthroughs.

Evidence #2:The ETH market cap is growing faster than the BTC market cap at the same age. Ethereum is barely half a decade old and its market cap is almost a quarter of a trillion dollars. Bitcoin’s market cap was 10 billion dollars around the same age.

Evidence #3:
Ethereum just crossed the $1900 mark; when Bitcoin did that in the spring of 2017, it was then able to reach $19,000 by the end of that year. This must be seen in the light of the fact that Ethereum is more useful than Bitcoin.

Credits:

Rob Zel, founder bitni.com

Jonathan Kibbler, Head Currency Analyst, Blueberry Markets

Maximilian Schmidt, founder CPI Tech

Pramod Dhakal

Pramod Dhakal is a Tech entrepreneur at heart, a natural leader, an Agile practitioner, and a Digital Transformation provoker. He has spent over a decade implementing various large-scale transformation initiatives in large multinational organizations. He is an author and contributor at Hitechies largely in the technology space. Pramod is an active investor in cryptocurrencies and he is extremely positive about the future of the decentralized digital economy.