Ethereum Price Prediction: Why ETH Is the Best Cryptocurrency in 2018
The latest cryptocurrency crash has bolstered our religion in Ethereum. Ethereum is one cryptocurrency that proved its mettle, whereas most others, together with crypto heavyweight Bitcoin, faltered. Ethereum “Casper,” the Enterprise Ethereum Alliance (EEA), and Ethereum purposes are a few of its strengths that we’ll talk about in our upbeat Ethereum value forecast 2018. So stick with us.
But first, let’s rewind again to January and assess how Ethereum emerged as the most potent combatant in the cryptocurrency massacre.
Why Ethereum May Be the Best Cryptocurrency
The just lately witnessed colossal drop in cryptocurrency costs has spooked buyers. There is a severe concern that investing in cryptocurrencies is like placing your hand in the lion’s mouth. That concern is real. To tackle it, let’s take off our rose-colored glasses for some time.
There’s no query that blockchain is a revolutionary expertise all set to make a mark in historical past. But the crypto crash 2018 confirmed us that not all blockchain-based cryptocurrencies are value the worth that exuberant crypto bulls have been ascribing to them.
In truth, many bullish cryptocurrency buyers are lastly coming to their senses and accepting that almost all cryptocurrencies should not going to be right here 10 years down the street.
Take the instance of Barry Silbert of Digital Currency Group (DCG), whose agency launched the largest Bitcoin fund, Bitcoin Investment Trust (GBTC), and is now introducing the Grayscale Digital Large Cap Fund, one other funding fund with five crypto holdings—the high two being Bitcoin and Ethereum.
At the Yahoo! Finance All Markets Summit final week, Silbert stated, “In the long run, I think there’s only going to be one digital gold. I think there’s only going to be one privacy-focused token. I think there’s going to be one main smart-contract platform.” (Source: “All Markets Summit: Crypto,” Yahoo! Finance, February 7, 2018.)
When he speaks of “one main smart-contract platform,” we really feel an automated pull towards Ethereum. After all, the solely different smart-contract platforms we have now up to now heard of are both “Ethereum equivalents,” “Ethereum competitors,” or purported “Ethereum killers.” Simply put, they’re all second to Ethereum. Ethereum stays the chief for getting into this area of interest first.
Why Consider Ethereum Following the Crash?
Now, cryptocurrency costs have traditionally moved in tandem with Bitcoin. To at the present time, most crypto costs are expressed when it comes to BTC. Bitcoin has a robust affect on crypto markets. It is the tide that lifts all boats, and likewise one that runs them aground .
But in January, when Bitcoin and different cryptocurrencies reeled, we noticed not less than two notable factors on the ETH value chart the place Ethereum costs decoupled from BTC. Despite the huge crash in costs by means of the most a part of January and early February, Ethereum emerged as one of the only a few cryptocurrencies that noticed their general value efficiency keep inexperienced.
Chart courtesy of TradingView.com
So, what precisely is it about Ethereum that’s driving investor curiosity on this digital foreign money? Here are the three distinguishing attributes which have made Ethereum a top-notch crypto.
Enterprise Ethereum Alliance
To start with, the most propitious cause why Ethereum stands out as the finest cryptocurrency is its partnership with real-world companies by way of the Enterprise Ethereum Alliance.
The EEA, which has up to now signed up over 500 distinguished members, is geared towards selling Ethereum to world enterprises. Count in Microsoft Corporation (NASDAQ:MSFT), Samsung, JPMorgan Chase & Co. (NYSE:JPM), Intel Corporation (NASDAQ:INTC), Cisco Systems, Inc. (NASDAQ:CSCO) as its notable members.
While there are definitely different cryptos, like Ripple, forming real-world partnerships, none matches up to the reputation Ethereum has managed to construct in the company world.
The EEA put its promotional actions into second gear solely just lately after it introduced the hiring of its first Executive Director, Ron Resnick. With a brand new commander-in-chief main the means, the alliance will lastly have a proper company route to pursue.
We strongly imagine that, in his management, the EEA might give you the option to attain its ultimate purpose a lot sooner, which, as recognized by Resnick, is to “evolve Ethereum into an enterprise-grade technology.” (Source: “Enterprise Ethereum Alliance Appoints First Executive Director,” CoinDesk, January 17, 2018.)
Imminent Ethereum Upgrades
Then, there are the two upcoming upgrades that increase our spirits. Let me contact upon each of them.
When it comes to expertise, there are two frequent criticisms leveled at Ethereum. The first is the scalability subject, that Ethereum is slower than a few of the newer Ethereum copycats. While the Ethereum platform can course of roughly 15 transactions in a second, its newer counterparts can do up to 100,000 (in some instances, extra) in the identical time.
But Ethereum is engaged on an answer for that. Founder Vitalik Buterin has just lately shared a sneak peek into “Ethereum 2.zero″—the subsequent iteration of Ethereum’s expertise, which can increase its scale to course of 1000’s and 1000’s of transactions in a second. This shall be a sweeping enchancment for Ethereum.
Then, one other criticism relates to Ethereum’s “proof-of-work” mechanism for rewarding miners. Bitcoin makes use of the identical mechanism. But because it seems, this mechanism is turning into dysfunctional.
Proof-of-work is a capital-intensive mining incentive. It requires miners to spend an obscene amount of cash on their pc rigs to keep aggressive in the mining enterprise.
An different is the “proof-of-stake” mechanism which, loosely talking, rewards miners based mostly on how a lot pores and skin they’ve in the sport. It’s an affordable departure from the older proof-of-work mechanism, which is starting to render Bitcoin and Ethereum sluggish.
Now, Ethereum’s Casper replace will shift Ethereum from proof-of-work to a proof-of-stake community. The testnet for Casper was launched earlier in January. That’s when Ethereum costs spiked regardless of the ongoing crash. The ultimate replace will hit the mainnet later this yr. So, we have now our fingers crossed as we watch Ethereum take the massive strides towards technological enhancements. (Source: “ETH Breaks $1k As Casper Testnet Launches,” CryptoCurrency Facts, January 4, 2018.)
Finally, Ethereum’s increasing ecosystem is one more reason that places it forward of its friends. The variety of purposes being constructed on its platform is rising every passing day. As of now, greater than 1,050 decentralized purposes (DApps) are already working on Ethereum.
The purposes have been driving up the transactions quantity on its platform and, in flip, the value of ETH. Here’s how Ethereum’s transactions historical past stacks up towards Bitcoin’s.
Chart courtesy of BitInfoCharts.com
Bitcoin transactions, which traditionally remained larger than Ethereum’s, misplaced their lead in July final yr, past which Ethereum overtook Bitcoin. This is one other key issue that put a ground below ETH costs by means of the latest crypto crash. I’ve delved deeper into this aspect here.
Ethereum’s steadfast efficiency by means of the cryptocurrency crash proves that this can be one of the finest cryptocurrencies to take into account. The three aforementioned causes solely reinforce our bullish tackle this cryptocurrency.
Our Ethereum value forecast is optimistic as we put a $1,500 value goal on ETH. You can observe our daily Ethereum updates and analysis here.