Why can Ethereum be the currency of the year?
Theory points out why Ethereum may have the best performance of the year.
Ethereum is currently struggling to recover its three-month high of $ 281 in February 2020. However, experts have strong hopes that the digital asset will be the currency of the year ahead of all digital assets.
The cryptocurrency was never the same after the beginning of 2018 on the market. For some reasons, its response to the price change has been a little slower since that impressive run and failed to move with a huge margin when Bitcoin increased more than 50%.
Despite all these disadvantages, Ethereum is very popular with the various cryptocurrency prediction sites. According to CoinSwitch, Ethereum is likely to end the year with a trading price of $ 1449. This is a bit much when considering the current price and the rate of change. However, everything is possible in the crypto universe.
Bobby Ullery, a cryptocurrency expert also showed a strong belief in Ethereum technology and explained why digital assets can be the currency of the year. In its analogy, the cryptocurrency market capitalization will take a significant step towards reaching more than $ 1 trillion in 2020.
The main contributors would be Bitcoin and Ethereum, representing 25% of the total market value. This means that Ethereum would trade around $ 11,375 by the end of the year.
The global pandemic appears to have hit the cryptocurrency market badly, but Ethereum is still making incredible progress in its adoption. The adoption rate affects the price in the long run. In fact, its decentralized applications (dApps) registered 1.4 million active users in 2019, better than the 800,000 registered users in 2018.
In addition, the ETH 2.0 project is another factor that can work magic. The project that will be launched this year will have an impressive impact on the price, as the team seeks to make the transition from proof-of-work to proof-of-stake. In addition, block validators are expected to bet 32 ETH in an attempt to bet on the network, instead of maintaining mining platforms.
This will likely cause an increase in demand and eventually increase the price. In addition, it is possible that investors and mining companies seeking to benefit from a 5% to 18% stake will retain their assets until the launch of ETH 2.0, and investor behavior will be a huge gain for the market performance of the digital asset. .
In addition to the adoption of the project, Ethereum gained sufficient momentum during the year in preparation to obtain a positive result.