Ethereum on Fire — What’s next?
The price of Ethereum is skyrocketing and it may be due to various factors. Let us know about them and the way forward.
I have remembered the days where I bought ethereum for 150 dollars, and now I doubt myself whether it is a miracle or what. Not because of the ethereum hike, because it is the second most valuable cryptocurrency and there is no wonder that it would grab the market’s attention, but this spike before the release of ethereum 2.0 is astonishing.
I can say it sure that the layer 2 solutions have brought up a great turn in the ethereum market. It might also be due to the burning process ( Literally explaining the topic), but the question here, Is Ethereum is on the hike. What’s next?
This blog is all about the ethereum market and response of the market and the way forward on how to start your business and make profits with the ethereum spike. Let us jump into the blog
Ethereum — a Short intro
Ethereum is one of the oldest and the second most effective cryptocurrency in the digital currency space. You see, ethereum is not a simple cryptocurrency as bitcoin but it is completely based on technology. They provide cryptocurrency solutions like the smart contract and digital asset creation through tokens by introducing their token standards — ERC20 and ERC721. It is because they started their journey as ICO and evolved as one of the best cryptocurrencies ever in the crypto space.
Now, initially started with a value of $150, the value of Ethereum has touched $3k three days before. The growth of Ethereum is laudable as it has come across several crossroads like high gas fees, low liquidity, transactions per second is very low, and many others.
Let us discuss the future of Ethereum and the market trend that could happen in the upcoming days.
Disclaimer: This is a completely opinion-based prediction. It may or may not happen and I am not held responsible for what happens in the market.
What is next for Ethereum?
On a positive note, I hope that Ethereum has a bright future in the upcoming future. Even now, you can see many digital businesses have adopted the Etherum smart contract and ERC20 for their tokenization business. Many cryptocurrency exchanges are supporting Ethereum tokens for their token creation for their users making ERC a priority token among other blockchains or token creation platforms.
Problems and solutions
There has been several allegations against Ethereum that had been an obstacle for their growth in the early stages. Some of the most prominent obstacles include
- High Gas fees — Ethereum has been charging high gas fees due to the time taken to process the transaction.
- Transactions — Ethereum can handle only 8 to 10 transactions per second which is very low compared to other blockchains.
- Liquidity — Low amount of transactions and high gas fees have hit the liquidity factors to the most making it a more vulnerable coin in the entire crypto space.
Etherum is well aware of their problems and they have been coming up with various solutions that might improve their performance in the most effective way. Let us know what they have come up with.
- Ethereum has announced the roll-out of Ethereum 2.0 that might increase the factors of improving the liquidity to high levels thereby increasing the number of transactions and gas fees.
- It is no wonder that it is taking time as it is a huge leap for Ethereum, and so the etherum team has pacified the crypto world by introducing the Layer 2 solution roll-up that can improve the above-mentioned issues effectively until the arrival of Ethereum 2.0.
Cementing the problem with an effective solution enhances the credibility of the token and that is what Ethereum has done which is one of the main reasons why the coin prices are increasing. It is no doubt that the coin may increase further and follow the footsteps of Bitcoin. No wonder that it may outperform Bitcoin because Bitcoin is a coin with an influence, but ethereum is a coin with technology.
While talking about the negative side, there are possibilities that many of the holders of ethereum or new traders might sell off due to the lack of credibility in the coin. This might create unnecessary tension in the market thereby leading to the downturn of the market.
Also, there may be possibilities of theft of cryptocurrencies including Ethereum being theft from highly secure networks too by hackers that might affect the credibility of the coin too. You can take the recent theft of crypto including ethereum from Poly Network.
Ethereum is one of the most effective cryptocurrencies that are existing in the crypto space and we know it. Ethereum is showing improvement and I hope this would continue so that they could make their investors happy. Yes, there are certain impediments, but Ethereum can overtake those and come up with a strategy to create a new digital future in this technological world.