Ethereum is an open-source, public cryptocurrency and software system without a single entity due to its decentralized nature. By market capitalisation, it is the second largest cryptocurrency and has the most popular blockchain. The ethereum platform was developed in 2014 by Vitalik Buterin, Gavin Wood and a group of other developers and in 2015 it was released to the world. It issues crypto assets known as ethereum tokens, which allow users to create applications that generate revenue through adverts.
In general, the crypto market has been showing a downward trend since the last quarter of 2018 to the end of 2019. Ethereum was worth over 1,000 dollars in January 2018 and has fallen year-year to its current level of $160.
Some factors that affect the price of ethereum include; the ability of its smart contract facility to withstand adverse conditions. Macro events such as trading agreements between US and China and the price of all cryptocurrencies especially bitcoin. Its computing systems are decentralized and it has improved the trading platforms. Ethereum has increased demand for digital currencies and uses ether as its trading currency. It has more efficient and advanced technology as compared to the banking systems since it is permission-less and automated. At the moment, some governments and banks are transitioning to blockchain and ethereum may come highly suggested.
There have been predictions that the price of ethereum will rise back, especially in the years 2020, 2021 and 2020. The prices of ethereum in the block chain have been increasing considering the daily transactions, active addresses and the average transaction values met. Adoption rates for ethereum have also risen, making its average block time to rise to 13.33 seconds, the fastest in history.
Crypto analyst, Satoshi Flipper, tweeted that the prices of the ethereum in the block chain will experience one last pullback before it rises to $300. Calmly, another crypto analyst, also agreed that it would experience one last drop and then rise. Prices from a trading view, predicted that by the end of 2020 the price of ethereum will rise to $320. TieuLong from FX stated that the price of ethereum in the block chain has potential to grow to $1,365 by 2021. An increase of more than $2,500 is expected in the prices of ethereum and was a prediction made by Nigel Green from the DeVere group.
The prediction from trading beasts was that ether will rise to $908 and to an average price of $650 by the end of 2020. Prices of ethereum are predicted to increase to $100,000 in the next five years and may soon replace gold made by Brian Schuster. CoinKir predicted a possibility of the price ethereum reaching $1,000 by May 2020 and $1,455 by the end of 2020. Predictions made by other analysts were that the price will rise up to $1,400 in 2020 due to the growth and developments being made to the blockchain.
Since the beginning of 2020, the price of ethereum has risen by over 70% and has been indicating a profitable future. 2020 is predicted to be the best-performing and most remarkable year for the ethereum blockchain and other cryptocurrencies. That's because of forecasts for a rise in cryptocurrency prices in the coming months. Adoption of ethereum has also been on the rise because of its applications and growing confidence in its future. The price movements of ethereum are strongly correlated to those of bitcoin. However, price movements of ethereum are stronger than those of bitcoin due to its vision and technology.
Improvements towards finishing eth 2 and addressing positively the criticisms about the scalability and speed of the network have been underway. Ethereum 2 is also known as serenity and it is in its last development phase. Its main aim is to fix the blockchain platform and help in voting, cloud computing, social networks as well as advanced financial systems. This will be the case if developers work towards improving the ethereum blockchain in the coming years.
Ethereum plays a key role in the cryptocurrency industry especially since it encourages development and innovation of new project ideas. Transitioning to ethereum would be profitable and of great importance to anyone.